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Air Arabia reports Dh44m Q3 net loss

Issac John /Dubai
issacjohn@khaleejtimes.com Filed on November 10, 2020
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Air Arabia announced on Tuesday a net loss of Dh44 million for the third quarter ending September 30 as a direct result of the continued impact of the pandemic on airline operations.

The low cost carrier’s turnover for the third quarter was Dh94 million as it served a total of 665,456 passengers from all five hubs in the same period.

“The third quarter 2020 witnessed partial resumption of scheduled flights to a limited number of destinations across the Air Arabia network. This, combined with the strong cost control measures that Air Arabia adopted since the start of Covid-19, resulted in limiting the net loss of the third quarter,” the Sharjah-based carrier said in a statement.

Sheikh Abdullah bin Mohamed Al Thani, chairman of Air Arabia, said the early measures taken by the management team to control overall cost while seizing revenue opportunities under current circumstances helped limit net loss.

The third quarter witnessed a gradual resumption of scheduled operations across a limited number of routes unlike in the second quarter when operations focused on repatriation, charter, and cargo flights, the airline said.

“Additionally, the carrier continued to take measures to reduce overall cost during the quarter while enhancing its liquidity.”

Al Thani said the third quarter witnessed the resumption of a limited number of flights in selective markets. “We are hopeful that more markets will gradually resume in time. We have also launched operations of Air Arabia Abu Dhabi during this unprecedented time reflecting the confidence and commitment we have towards the aviation industry in the UAE and the region.”

The third quarter witnessed the launch of Air Arabia Abu Dhabi with its first flight to Alexandria in July. This was followed by additional routes from Abu Dhabi International Airport to Cairo, Sohag, Dhaka, Kabul, Chattogram and Khartoum.

Air Arabia Abu Dhabi, which was formed following an agreement by Etihad Airways and Air Arabia to establish the capital’s first low-cost carrier, follows the business model of Air Arabia and complements the services of Etihad Airways from Abu Dhabi thereby catering to the growing low-cost travel market segment in the region.

Al Thani said although 2020 continues to be a challenging one for the world economy including the aviation sector, the fundamentals of the industry remain very strong and air travel will continue to play a vital role in economic recovery. “While at Air Arabia we remain in a strong position to weather the impact of the pandemic, we will continue to gradually resume operations where possible while keeping business continuity as the prime focus.”

issacjohn@khaleejtimes.com

author

Issac John

Editorial Director of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.





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