Air Arabia sees 126% jump in net profit

Air Arabia has reported a profitable first half (January to June) 2021 despite COVID-19's continued impact on the aviation’s industry financial and operational performance.

The Sharjah-based low-cost carrier registered a net profit of AED 44 million during the six-month period, which is an increase of 126 per cent compared to the first half of 2020.

The airline also posted a turnover of AED 1 billion, a 5 per cent increase compared to the first half of last year.

More than 2.3 million passengers flew with Air Arabia between January and June 2021 across the carrier’s five hubs while the airline’s average seat load factor – or passengers carried as a percentage of available seats – stood at 73 per cent.

This is the third consecutive profitable quarter that the company managed to register since the pandemic hit the aviation industry. 

During the second quarter ending June 30, 2021, Air Arabia registered a net profit of AED 10 million, an increase of 104 per cent compared to the net loss reported for the same period last year.

The company’s turnover for the second quarter of 2021 increased by 313 per cent as gradual recovery continued and registered AED 496 million, compared to AED 120 million in the corresponding period last year.

More than 940,000 passengers flew with Air Arabia between March and June 2021 across the carrier’s five hubs while the airline’s average seat load factor during the second quarter of 2021 stood at 70 per cent.

Sheikh Abdullah Bin Mohamed Al Thani, Chairman of Air Arabia, said: "Air Arabia’s ability to post a profitable first half 2021, despite the continued impact of the COVID-19 pandemic on the aviation industry worldwide, is a direct result of the cost control measures adopted by the management team and supported by the gradual resumption of operations witnessed in the first half."

During the first half of the year, Air Arabia managed to also expand its route network by launching new flights from its hubs in the UAE and Egypt.

It also partnered with Etihad Guest, the loyalty programme of Etihad Airways to allow members of both schemes to benefit from reciprocal points and miles transfers.

In July 2021, Air Arabia Group signed an agreement with The Armenian National Interests Fund (ANIF) to launch Armenia’s new national airline.

Air Arabia reports first half 2021 net profit of AED 44 million. Profitability supported by cost control measures and gradual flight resumption.https://t.co/5rtBOELtnR pic.twitter.com/mmoRjfJqef

— Air Arabia (@airarabiagroup) August 9, 2021