Air Ara­bia posts strong Q3 net profit of AED 297m

Kuwait Times - - BUSINESS -

Air Ara­bia, the first and largest low-cost car­rier (LCC) in the Mid­dle East and North Africa, today an­nounced its fi­nan­cial re­sults for the third quar­ter end­ing Septem­ber 30, 2016, as the suc­cess of the com­pany’s ex­pan­sion strat­egy con­tin­ued to be re­flected in strong per­for­mance fig­ures.

Air Ara­bia’s net profit for the third quar­ter of 2016 was AED 297 mil­lion, up 26 per­cent com­pared to AED 235 mil­lion re­ported in the cor­re­spond­ing pe­riod of 2015. For the three months end­ing Septem­ber 30, 2016, the air­line posted a turnover of AED 1.12 bil­lion, in line with the rev­enue gen­er­ated in the same pe­riod of 2015. Air Ara­bia served over 2.27 mil­lion pas­sen­gers in the third quar­ter of 2016, a 14 per­cent in­crease com­pared to 2 mil­lion pas­sen­gers in the same pe­riod of last year. The av­er­age seat load fac­tor - or pas­sen­gers car­ried as a per­cent­age of avail­able seats - for the same quar­ter stood at an im­pres­sive 81 per­cent.

Sheikh Ab­dul­lah Bin Mohammed Al-Thani, Chair­man of Air Ara­bia said: “The strong third quar­ter and year to date per­for­mance is a re­flec­tion of Air Ara­bia’s com­mer­cial and op­er­a­tional strengths sup­ported by the com­pany’s com­mit­ment to de­liver high value air travel to its cus­tomers and re­turn on in­vest­ments to its share­hold­ers”.

He added: “De­spite chal­leng­ing trad­ing con­di­tions driven by ex­cess ca­pac­ity in the mar­ket, po­lit­i­cal in­sta­bil­ity in some mar­kets and the ef­fect of lower oil price in the re­gional economies, we re­main con­fi­dent about the long-term prospects for the low cost in­dus­try in re­gion and our abil­ity to con­tinue with our growth plans while de­liv­er­ing our value-for-money prom­ise to our cus­tomer’s ev­ery­day”.

Air Ara­bia’s net profit for the first nine months of 2016 stood at AED 542 mil­lion, up 15 per­cent com­pared to AED 472 mil­lion re­ported in the cor­re­spond­ing pe­riod of 2015. For the nine months end­ing Septem­ber 30, 2016, the air­line posted a turnover of AED 2.96 bil­lion, an in­crease of 3 per­cent com­pared to AED 2.86 bil­lion in the same pe­riod of 2015. The low-cost avi­a­tion pi­o­neer served over 6.3 mil­lion pas­sen­gers in the first nine month of 2016, a 14 per­cent year-on-year in­crease. The av­er­age seat load fac­tor - or pas­sen­gers car­ried as a per­cent­age of avail­able seats - for the same pe­riod stood at an im­pres­sive 80 per­cent.

Air Ara­bia com­pleted 13 years last month, main­tain­ing its con­tin­u­ous record of prof­itabil­ity since its first year of oper­a­tions. The car­rier added five new routes to its global net­work dur­ing the first nine months of 2016 from its op­er­at­ing hubs in the UAE, Morocco and Jor­dan.

Air Ara­bia also added to its im­pres­sive list of in­ter­na­tional ac­co­lades in the third quar­ter of 2016 when it was ranked third among the top 50 air­lines in the world fol­low­ing a re­port com­piled by Air­fi­nance Jour­nal sur­vey­ing 137 car­ri­ers across the globe. The car­rier was also named “Low Cost Air­line of the Year’ at the Avi­a­tion Busi­ness Awards and took home the ‘Cor­po­rate So­cial Re­spon­si­bil­ity Ini­tia­tive of the Year” award in recog­ni­tion for its ‘Charity Cloud’ pro­gram. Air Ara­bia’s Group Chief Ex­ec­u­tive Of­fi­cer Adel Al Ali has also won ‘Air­line CEO of the Year’ award at the 10th CEO Mid­dle East Awards that took place in Septem­ber 2016.

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