News DeskAir Arabia, the Middle East and North Africa’s first and largest low-cost carrier (LCC), today announced robust financial and operational results for the first quarter of 2024. The airline continues to expand its network and strengthen its market leadership position.
The airline reported a net profit of AED 266 million for the first quarter ending March 31, 2024, a 22 percent decrease from the AED 342 million registered in the same quarter in 2023. Despite this, the airline posted a turnover of AED 1.54 billion, marking an 8 percent increase compared to the first quarter of the previous year.
Air Arabia served more than 4.4 million passengers across its operating hubs between January and March 2024, a 13 percent increase from the 3.9 million passengers carried in the first quarter of the previous year. The airline’s average seat load factor, or passengers carried as a percentage of available seats, stood at an impressive 85 percent during the first three months of 2024.
Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, commented on the results, stating, “Air Arabia’s strong financial results achieved in the first three months of this year reflect our unwavering dedication to operational excellence and our commitment to continuously delivering value-driven product to our customers.”
Despite ongoing economic and geopolitical uncertainty, seasonality impact, fuel price volatility, currency fluctuation, and supply chain challenges, Al Thani expressed confidence in the airline’s ability to navigate market challenges and capitalize on new opportunities.
The first quarter net profit was driven by robust passenger demand and revenue growth, despite being impacted by the seasonality shift during Ramadan, higher fuel prices, currency fluctuations in key markets, and ongoing supply chain challenges contributing to higher inflationary costs across the industry.
Al Thani added, “As we navigate the current geopolitical challenges and the prolonged supply chain disruptions that the global aviation industry continues to face, we remain steadfast in our growth plans for 2024. We are confident about the prospects of the low-cost travel industry while we continue exploring new opportunities that will allow us to expand the reach of our value-driven product to a broader customer base.”
During the first three months of 2024, Air Arabia added two new routes to its global network from its operating hubs in the UAE, Morocco, Egypt, and Pakistan, serving passengers with its modern fleet of 74 new Airbus A320 and A321 aircraft. Air Arabia was ranked third highest operating margin worldwide at the ‘Airline Weekly’ World’s Most Profitable Airlines index. In March, Air Arabia shareholders approved a 20% dividend distribution at the carrier’s Annual General Meeting for the year 2023. The airline’s liquidity for the first quarter of 2024 stood at AED 5 billion in cash and cash equivalent.
