UAE’s Air Arabia (PJSC), the leading low-cost carrier (LCC) in the region, achieved remarkable success in 2023, with a record-breaking net profit of AED1.5 billion ($408 million). This represents a significant 27 percent increase compared to the previous year’s AED1.2 billion. The company’s financial results for the full year ending on December 31, 2023, revealed a turnover of AED6 billion, reflecting a 14 percent increase compared to the AED5.2 billion registered in 2022, WAM reported.
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The Board of Directors of Air Arabia has proposed a dividend distribution of 20 percent of share capital, equivalent to 20 fils per share. This proposal was made after a meeting of the board of directors and is subject to ratification by Air Arabia’s shareholders at the upcoming Annual General Meeting.
Sheikh Abdullah bin Mohamed Al Thani, Chairman of Air Arabia, expressed his satisfaction with the company’s performance despite the numerous geopolitical and economic challenges faced by the global aviation industry. He attributed the success to the increase in operating capacity and the addition of new routes across the global network from all of Air Arabia’s seven operational hubs.
In 2023, Air Arabia demonstrated its commitment to strong growth by expanding operations across its seven hubs and introducing 26 new routes. This strategic expansion resulted in an increase in operational capacity and a remarkable 31 percent surge in the number of passengers carried, reaching a total of 16.7 million passengers.
In the fourth quarter of 2023, Air Arabia reported a net profit of AED225 million, which was 37 percent lower than the AED356 million recorded in the same quarter of the previous year. However, it is worth noting that the previous year’s quarter had witnessed record high yield margins. The turnover for the last quarter of 2023 increased by 11 percent to reach AED1.54 billion, and the seat factor for the quarter remained strong at 81 percent.
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