Air Arabia net profit surges 70% to Dh1.2 billion in 2022

Air Arabia on Monday said its annual profit surged by 70 per cent to Dh1.2 billion in 2022 as it carried 12.8 million passengers, exceeding pre-pandemic levels.

In a statement, the Sharjah-based airline said it recorded almost doubling the profit and passengers’ numbers of the previous year, as the airline continued with its growth plans, delivering remarkable financial and operational performance.

Air Arabia reported a net profit of Dh1.2 billion for the full year ending December 31, 2022 compared to Dh720 million in 2021, reflecting a growth of 70 per cent.

The airline turnover also surged 65 per cent to Dh5.2 billion from Dh3.2 billion in 2021.The financial and operational results achieved in 2022 were strongly supported by the growth in passenger numbers that exceeded pre-pandemic levels.

Air Arabia served more than 12.8 million passengers in 2022 from its seven hubs in the UAE, Morocco, Egypt, Armenia, and Pakistan, an increase of 90 per cent compared to 6.8 million passengers carried in 2021. The average seat load factor – or passengers carried as a percentage of available seats – for the full year stood at a high 80 per cent.

Board proposes dividend

Air Arabia’s board of directors proposed a dividend distribution of 15 per cent of share capital, which is equivalent to 15 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 2022 record profitability is considered the best in the company’s operating history.

"The remarkable operational and financial performance reflect the carrier’s robust business model, its management team, as well as its discerning growth strategy. Although the year 2022 continued be challenging, the aviation industry has begun returning to normality as airlines and airports worldwide witnessed faster recovery following the drop in demand cause by the pandemic,” Al Thani said.

He said Air Arabia Group maintained its robust growth in 2022 by increasing its fleet size and adding new routes across its global network while launching the operations of its latest joint venture airlines in Armenia and Pakistan.

"We are proud that Air Arabia’s value-driven product and services now reaches a wider and fast-growing customer base spread across key regional markets,” he said.

Q4 performance

In the fourth quarter ending December 31, 2022, the airline reported a net profit of Dh356 million, 24 per cent less than the Dh467 million registered in the same quarter last year, which witnessed record high yield margins and lower fuel prices.

The turnover for the last quarter 2022 reached Dh1.4 billion, an increase of seven per cent compared to the same quarter last year.

Air Arabia carried more than 3.6 million passengers from its seven hubs in the fourth quarter, an increase of 44 per cent compared to 2.5 million passengers carried in the same period last year. The average seat load factor for the same period stood at impressive 79 per cent, reflecting the stable recovery witnessed in demand for air travel.

“The solid fourth quarter and full year results were supported by the carrier’s cost control measures, strong yield margins and higher demand for its value-driven product. We remain committed to proving our customers with the best travel deals while continuously investing in growth and product innovation,” Al Thani added.

24 new routes

Air Arabia added 24 new routes to its global network in 2022 from its operating hubs in the UAE, Morocco, Egypt, Armenia, and Pakistan.

The carrier also took delivery of 10 new aircraft and ended the year with a fleet of 68 Airbus A320 and A321 aircraft operating to over 190 routes across the Middle East, Africa, Asia, and Europe.

Air Arabia Group has also launched operations of its latest joint ventures airlines in Armenia and Pakistan. In June, “Fly Arna”, Armenia’s National Airline, started its operations from its base in Yerevan and continued to expand its network by adding five new routes while “Fly Jinnah”, Pakistan new low-cost carrier, started its operations in October and added four domestic destinations.

Air Arabia Group along with DAL Group signed an agreement to form “Air Arabia Sudan”, a joint venture company that will be based in Khartoum. The new airline will follow the same low-cost business model providing its customer base with a reliable operation and value-driven product.

“While airlines continue navigating various challenges this year, we are confident of the fundamentals of the aviation sector and the underlying demand for affordable air travel. Air Arabia continues to drive its business by a clear strategy for growth and supported by its commitment to continuously maximise value offering to its customers and shareholders,” Al Thani concluded.

— muzaffarrizvi@khaleejtimes.com

• Business