Posted on: 07 February 2016 by Mark Howells
Air Arabia has reported its full-year financial results for the full year ending 31 December 2015 featuring a net profit of AED 531 million, which is 6% lower than the 2014 net profit of AED 566 million.
Turnover in 2015 reached AED 3.8 billion, an increase of 3% over 2014 as the airline continued to expand its customer base. More than 7.6 million passengers flew with Air Arabia in 2015, a 12% year-on-year increase. The average seat load factor in 2015 was 79%.
“2015 was a year of growth and achievement for Air Arabia as our expansion strategy, efficient operations and tight cost controls reinforced our market leading position,” commented Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia. “The impact of low oil prices continues to have its effect on the wider global economy, while pressure on yields and geopolitical uncertainty continued to weigh on the aviation industry. Despite these challenges, Air Arabia once again delivered a strong set of numbers and remains well positioned for further growth in 2016.”
Air Arabia added 23 routes to its network in 2015, including becoming the first low-fare airline from the Middle East and Africa to enter the Chinese market with the launch of regular non-stop services to Urumqi, the largest city in Western China.
The airline also added a fifth international hub with the formation of “Air Arabia Jordan” and the opening of a fixed-based operation at Amman Queen Alia International Airport.
“Going forward, we will remain focused on ceaselessly delivering on our promise to help people fly more for less, with innovation and operational efficiency at the heart of our business,” Sheikh Al Thani added.
In the fourth quarter of 2015 (4Q15), Air Arabia reported a net profit of AED 59 million, down 13% on 4Q14’s figure of AED 68 million. Turnover for the three months ending 31 December 2015, was AED 957 million, compared with AED 924 million in the same period in 2014, an increase of 4%. Air Arabia flew 2 million passengers in the final quarter of 2015, up 17% on the corresponding 2014 figure.