Posted on: 11 August 2016 by Mark Howells
Air Arabia has announced its financial results for the first half of 2016 (1H16) which ended on 30 June 2016, featuring a net profit of AED 245 million, an increase of 3.5% compared with the AED 237 million reported in 1H15.
The company’s turnover for the first six months of 2016 reached AED 1.84 billion, compared with AED 1.75 billion in the corresponding period last year, an increase of 5.5%.
Air Arabia flew 4.1 million passengers during the 1H16, up 14% on 1H15’s figure. The load factor for those six months was 79%.
Sheikh Abdullah Bin Mohamed Al Thani, chairman of Air Arabia, commented, “Air Arabia’s strong financial results are a testament to the airline’s unwavering commitment to delivering on its value-added proposition for customers combined with its operational efficiency and the effectiveness of its wider growth strategy. Despite the continuous pressure on yield margins that airlines are witnessing and the challenges associated with the regional economic outlook, Air Arabia continues to deliver solid financial performance and momentum growth.
Air Arabia flew more than 2 million passengers in the second quarter (2Q16) ending 30 June 2016, an increase of 12% compared with 2Q15. The load factor for the period was 78%.
The company’s turnover in 2Q16 reached AED 894 million, an increase of 4% compared with 2Q15. Net profit during the 2Q16 was AED 131 million, 14% down on the corresponding period in 2015. The company attributes this to a regional shift in traffic during 2Q16 due to the month of Ramadan and the excess in capacity available in the market which is affecting airline’s yield margins.