Air Arabia posts Dh720m record profit in 2021 despite pandemic imapct

Air Arabia on Monday said it earned record net profit in 2021 despite the prevailing impact of Covid-19 pandemic that continued throughout the year.

In a statement, the Sharjah-based airline reported a net profit of Dh720 million for the full year ending December 31, 2021, an increase of 475 per cent compared to Dh192 million net loss registered for the full year 2020, which was heavily impacted by Covid-19 pandemic restrictions on air travel.

“The airline’s turnover for the full year 2021 reached Dh3.17 billion, an increase of 71 per cent compared to the Dh1.85 billion registered for the full year 2020,” the airline said in a statement.

The financial and operational results achieved in 2021 were backed by ease of travel restrictions and recovery in demand for air travel. Air Arabia served more than 6.7 million passengers last year from its five hubs in the UAE, Morocco and Egypt, an increase of 54 per cent compared to the 4.3 million passengers carried in 2020. The average seat load factor — or passengers carried as a percentage of available seats — for the full year remained strong at 73 per cent.

Air Arabia’s board of directors proposed a dividend distribution of 8.5 per cent of share capital, which is equivalent to 8.5 fils per share. This proposal was made following a meeting of the board of directors of Air Arabia and is subject to ratification by Air Arabia’s shareholders at the company’s upcoming annual general meeting.

Sheikh Abdullah bin Mohammad Al Thani, Chairman of Air Arabia, said Air Arabia’s full year record profitability is a testament to the strength of the business model “we operate, the group’s management team, as well as the diversification and growth strategy adopted”.

He said the year 2021 continued to be challenging for the aviation industry worldwide because of the lasting impact of the Covid-19 pandemic and the restrictions it imposed on air travel.

“Despite that, we are proud that Air Arabia managed to deliver such a performance signalling a steady recovery for the industry,” Al thani said.

Q4 strong results

In the fourth quarter ending December 31, 2021, Air Arabia reported a net profit of Dh467 million compared to Dh20 million in the same period last year. The turnover for the last quarter 2021 reached Dh1.3 billion, an increase of 143 per cent compared to the same quarter last year.

Air Arabia carried more than 2.5 million passengers from its five hubs in the fourth quarter, double the number of passengers carried in the same period last year. The average seat load factor increased by six per cent, reflecting the increase in demand for air travel witnessed in the last quarter, and stood at an impressive 81 per cent. This is the fifth consecutive profitable quarter that Air Arabia managed to register since the pandemic hit the aviation industry.

Al Thani said the remarkable performance for the fourth quarter was supported by higher customer demand for our value driven product, stronger yield margins, and was combined with the cost control measures adopted by the management team since the start of the pandemic.

“Air Arabia remains committed to providing customers with the world’s best value driven air travel while focusing on operational efficiency and cost control,” he said.

— muzaffarrizvi@khaleejtimes.com