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Air Arabia announces AED 50m net profit for 1Q10

Air Arabia has announced its financial results for the three months ending 31 March 2010, with another profitable quarter being achieved during a period notable for low yields among airlines worldwide.

Air Arabia’s net profit for 1Q10 stood at AED 50 million, a decline of 51% compared to the profit of AED 103 million in 1Q09. The decline in profitability, the airline says, was in line with global trends of the aviation industry performance represented by the increase in fuel cost as well as continuous pressure on yield margins.

In 1Q10, Air Arabia posted a turnover of AED 482 million, an increase of 4% compared with AED 463 million in 1Q09.

The airline carried 1.03 million passengers in 1Q10, an increase of 9.2% over the 951,000 passengers in 1Q09. Air Arabia’s average seat load factor for the quarter stood at an impressive 80%, sustaining the carrier’s performance from the previous period.

“We are glad about the positive results Air Arabia posted in the first quarter of this year,” remarked Adel Ali, board member and group chief executive officer, Air Arabia. “The lingering impact of the global financial crisis and the rise in fuel cost continues to affect the profitability of airlines worldwide as a result of continuous dilution in yields versus market over capacity. Nevertheless, Air Arabia posted appealing profits for this quarter and maintained its positive growth in passenger numbers.

“As we continue to chart our growth path, including the upcoming launch of service from our third hub in Egypt, Air Arabia remains committed to excellence across its operations, and providing its customer best value for money.”

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