Air Arabia delivers track record 2019 net profit of over AED 1 Billion

posted on 10th February 2020 by Eddie Saunders
Air Arabia delivers track record 2019 net profit of over AED 1 Billion

Air Arabia (PJSC), the Middle East and North Africa’s first and largest low-cost carrier, announced today its financial results for the full year ending 31 December 2019, reflecting a record year of profitability and continued growth.

Air Arabia reported a track record net profit of AED 1 billion for the full year ending December 31, 2019, an increase of 80 per cent compared to the net profit registered in 2018 (Excluding the impairment accounting treatment that Air Arabia took in 2018). The airline’s turnover for the full year 2019 reached AED 4.75 billion, an increase of 15 per cent compared to the turnover registered in the full year 2018.

The strong full year financial results were backed by solid growth in passenger demand with Air Arabia serving more than 12 million passengers from its four hubs in the UAE, Morocco and Egypt, an increase of 10 per cent compared to the 11 million passengers carried last year. The average seat load factor – or passengers carried as a percentage of available seats – for the full year increased 2% at an impressive 83 per cent.

Air Arabia’s Board of Directors proposed a dividend distribution of 9 per cent of share capital, which is equivalent to 9 fils per share. This proposal was made following a meeting of the board of directors of Air Arabia and is subject to ratification by Air Arabia’s shareholders at the company’s upcoming Annual General Meeting.

Commenting on the results, Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, said: “The year 2019 was a challenging year for the aviation industry worldwide. The global economy endured a slowdown in key international markets while escalating geo-political pressures continued to impact the trading environment. Despite all that, we are proud that Air Arabia managed to deliver a track record year in its young history and to cross, for the first time, the AED 1 Billion mark in profitability”.

He added: “Our focus on expanding into new markets combined with improved operational efficiencies has led to another year of sustained growth and profitability for the airline. The strong performance in 2019 is a testament to the strength of the business model we operate and the carrier’s management team”.

In the fourth quarter ending December 31, 2019, Air Arabia reported a net profit of AED 199 million while the turnover for the last quarter 2019 reached AED 1.14 billion. Air Arabia flew over 2.9 million passengers from its four hubs in the UAE, Morocco and Egypt in the last quarter 2019, an increase of 8 per cent compared to 2.7 million passengers carried in the same quarter last year. The average seat load factor for the same quarter increased 2% and stood at an impressive 81 per cent.

The remarkable profit that Air Arabia achieved in 2019 was complemented a with lower fuel price in the last quarter as well as less volatile currency movement compared to last year. The results were also supported by higher customer demand, stronger yield margins and was combined with higher fleet utilization and solid cost control measures adopted by the management team.

Al Thani concluded: “While Air Arabia managed to register record fourth quarter and full year 2019 performance; going forward, we remain focused on driving operational efficiency across board, exploring opportunities and ventures that will best serve the airline’s ambitious growth plans while delivering optimum value to our customers and shareholders”.