Sharjah-based low-cost carrier Air Arabia has announced remarkable financial and operational achievements for the third quarter and the first nine months of 2024. For the third quarter ending September 30, 2024, Air Arabia reported a net profit of AED564 million ($153.5 million), an increase of 8 percent over the AED522 million earned during the same period in 2023. The airline’s revenue reached AED1.78 billion ($484.6 million), reflecting a 10 percent rise compared to the third quarter of the previous year.
Between July and September 2024, more than 5.1 million passengers traveled with Air Arabia Group across its various operating hubs, marking an 8 percent growth from the 4.7 million passengers served in the same quarter of the prior year.
The average seat load factor for the airline—indicating the proportion of available seats that were filled—rose by 2 percent, achieving 81 percent in the third quarter of 2024, highlighting the strong demand for Air Arabia’s offerings.
Read more: Air Arabia launches Sharjah-Yanbu flights, bringing UAE-Saudi routes to 12
Robust growth
Sheikh Abdullah Bin Mohammad Al Thani, Air Arabia’s chairman, commented that the record net profit achieved by the airline in the third quarter, along with robust growth in revenue and passenger demand, underscored the effectiveness of their business model and the genuine value they provide to customers.
He also mentioned that the aviation sector faced various geopolitical and economic challenges during the third quarter, noting that airlines had to deal with airspace restrictions in certain regions, which necessitated route modifications and, in some cases, flight cancellations. He pointed out that the industry continued to grapple with inflationary pressures stemming from persistent supply chain issues, currency fluctuations, and fuel price volatility. Despite these challenges, he highlighted that Air Arabia successfully broadened its network, boosted operating capacity, and preserved a solid operating margin, demonstrating the resilience of their business model and the strength of their management team.
Overview of performance in the first nine months of 2024
In the first nine months of 2024 (January to September), Air Arabia reported a net profit of AED1.25 billion, which represents a 5 percent decline from the AED1.32 billion recorded in the same period of 2023. The airline’s turnover for this period was AED4.98 billion, indicating a 12 percent increase compared to the AED4.45 billion achieved in the first nine months of the previous year.
During this timeframe, over 14 million passengers flew with Air Arabia, signifying a 13 percent increase compared to the total from the same period last year. The airline’s average seat load factor also improved by 2 percent, reaching a strong 82 percent for the first nine months of 2024.
Strong liquidity and commitment to growth
As of the end of September 2024, Air Arabia’s liquidity was robust, with AED4.9 billion in cash and cash equivalents.
In his concluding remarks, Al Thani expressed that throughout the first nine months of 2024, they maintained a strong commitment to growth in all areas of their operations. He stated that this included expanding their fleet, launching new routes, and increasing flight frequencies at all operational hubs. He indicated that, as they looked ahead to the remainder of the year, the focus would remain on strategic growth, disciplined cost management, and delivering exceptional value to customers.
Expansion of fleet and network
In the first nine months of this year, Air Arabia added six new aircraft to its modern fleet, bringing the total to 77 owned and leased Airbus A320 and A321 aircraft. During the same period, the airline enhanced its network by introducing 22 new routes across its operating hubs in the UAE, Morocco, Egypt, and Pakistan.
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