Air Arabia reports 'strong financial performance' in H1

 Air Arabia reports 'strong financial performance' in H1
Published: 12 August 2018 - 7:16 a.m.
By: Alexander Pieri

Unveiling its financial results for the first half of the year, which ended on 30 June 2018, Air Arabia reported a strong and progressive financial performance.

Bolstered by solid growth in passenger demand that saw 4.2 million passengers travelling with the airline in the first half of 2018, Air Arabia reported over $62m (AED 230m) in net profit.

While equating to 12% less than the $71m (AED 261m) recorded during the same period last year, the carrier’s turnover for the first six months of 2018 passed $494m (AED 1.816bn), a 6% increase over the $467m (AED 1.716bn) reported at the same point in 2017.

Air Arabia’s average seat load factor in the first of half of 2018 reached 79%.

Sheikh Abdullah Bin Mohamed Al Thani, Chairman of Air Arabia said: “Air Arabia’s strong financial results are a testament to the airline’s robust growth strategy, operational efficiency and unwavering commitment to delivering on its value-added proposition for customers.

“The global aviation industry had to cope up with pressing economic challenges during the second quarter of this year and we are glad to see Air Arabia continuing to deliver strong financial and operational performance while maintaining its momentum growth across the breadth of its network,” he added.

In the second quarter of 2018, Air Arabia’s turnover reached $255m (AED 938m), representing a 4% increase over the same period in 2017, while net profit for the quarter passed $36.6m (AED 120m), a 24% decrease over the same point in the year before. A total of 2.05 million passengers flew with the airline in the second quarter and average seat load factor reached 78%.

Other milestones achieved in the first half of the year include the addition of three new Airbus A320 aeroplanes, which brings the size of the carrier’s fleet to 53 aircraft. Additionally, Air Arabia added 12 routes to its global network.

“Trading conditions continue to be influenced by the regional geopolitical and economic challenges, however, the outlook of low-cost travel in the region remains very strong. We continue to focus on further expanding our reach and operational efficiency capitalising on the fundamental strength of our business model and the value driven product offering to our customers”.

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