Air Arabia posts US $80.86m Q3 profit

Air Arabia posts US $80.86m Q3 profit
Sharjah-based airline reports 26% jump in Q3 profits.
Published: 14 November 2016 - 2:10 a.m.
By: Nikhil Pereira

Air Arabia has announced strong financial results for the third quarter ending September 30, 2016.

Air Arabia’s net profit for the third quarter of 2016 was US$80.86m (AED 297 million), up 26% compared to $63.98 million (AED 235 million) reported in the corresponding period of 2015.

For the three months ending September 30, 2016, the airline posted a turnover of $304.93 million (AED 1.12 billion), in line with the revenue generated in the same period of 2015.

Air Arabia served over 2.27 million passengers in the third quarter of 2016, a 14% increase compared to two million passengers in the same period of last year.

The average seat load factor – or passengers carried as a percentage of available seats – for the same quarter stood at 81%.

Air Arabia chairman Sheikh Abdullah Bin Mohammed Al Thani said in a statement: “The strong third quarter and year to date performance is a reflection of Air Arabia’s commercial and operational strengths supported by the company’s commitment to deliver high value air travel to its customers and return on investments to its shareholders.”

He added: “Despite challenging trading conditions driven by excess capacity in the market, political instability in some markets and the effect of lower oil price in the regional economies, we remain confident about the long-term prospects for the low cost industry in region and our ability to continue with our growth plans while delivering our value-for-money promise to our customer’s everyday”.

Air Arabia’s net profit for the first nine months of 2016 stood at $147.57 million (AED 542 million), up 15% compared to $128.51 million (AED 472 million) reported in the corresponding period of 2015. For the nine months ending September 30, 2016, the airline posted a turnover of $805.89 million (AED 2.96 billion), an increase of 3% compared to $778.66 million (AED 2.86 billion) in the same period of 2015.

Air Arabia served over 6.3 million passengers in the first nine month of 2016, a 14% year-on-year increase.

Air Arabia completed 13 years last month, maintaining its continuous record of profitability since its first year of operations. The carrier added five new routes to its global network during the first nine months of 2016 from its operating hubs in the UAE, Morocco and Jordan.

 

 

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