Air Arabia Q2 2014 net profit rises 128% to Dhs173m
Air Arabia (PJSC), the largest low-cost carrier (LCC) operator in the Middle East and North Africa, announced today its financial results for the second quarter ending June 30, 2014, underlining the airline’s market leading position, strong business model and consistent performance.
Air Arabia’s financial results for the second quarter of this year exceeded analyst expectations, with the airline recording an outstanding net profit of Dhs173m for the three months ending June 30, 2014, an increase of 128% compared to Dhs76m reported in the corresponding period of 2013. In the second quarter of this year, Air Arabia posted a turnover of Dhs915m, an increase of 15%compared to Dhs797m in the same period of 2013.
The airline served over 1.6 million passengers in the second quarter of 2014, an increase of 8% compared to the 1.5 million passengers carried in the same period of last year. The airline’s average seat load factor – or passengers carried as a percentage of available seats – during the second quarter of 2014 stood at an impressive 84%.
The 2014 second quarter financial results represent an all-time high for the airline and were driven by Air Arabia’s unique and innovative business practices, especially its dynamic fuel management policy and unrelenting focus on cost management.
“Air Arabia’s outstanding start to 2014 has accelerated in the second quarter as the investments made into our operational capacity and cost management have continued to deliver results,” said Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia. “We have seen an 11% increase in capacity in the first half of this year, yet we have sustained a high average seat factor and seen first half turnover increase by 15%. The average yield for the first half 2014 has also increased by 6%, a record that is not only among the highest in the industry but that also reflects the true low cost management practices that Air Arabia follows,” he added.
Air Arabia’s 2014 first half financial results have also exceeded analysts’ expectations reporting a net profit of Dhs248m for the first half ending June 30, 2014. This compares with Dhs134m in the corresponding period of 2013, an increase of 85%. The carrier’s turnover for the first half of 2014 stood at Dhs1.74bn, an increase of 15% compared to Dhs1.52bn reported in the same period of 2013. More than 3,366,046 passengers flew with Air Arabia in the first half of 2014, an increase of 11% on the same period last year and another record for the company; while the average seat load factor for the first half of this year stood at an impressive 83%.
“As we look to continue this momentum of business growth in the second half of the year, Air Arabia will remain focused on its ceaseless cost management operation and dynamic fuel management policies, while adopting new innovative services and measures that will add even more value to our customer-centric strategy. We look forward to serving many more passengers in the months and years to come,” concluded Al Thani.
Air Arabia, recently voted amongst the 10 most profitable Low Cost Carriers (LCC) in the world by Airline Business, has seen its route network in the first half of this year increase to 97 destinations in total, including the additions of Cairo in Egypt, and Antalya in Turkey from its main base at Sharjah International Airport.
Earlier in the first half of 2014, Air Arabia opened its second hub in the UAE and fourth worldwide at Ras Al Khaimah International Airport following a long term strategic partnership with Ras Al Khaimah Department of Civil Aviation. The first flight took off on May 6 and the carrier is currently offering direct services to seven cities from the hub, including Jeddah in Saudi Arabia; Cairo in Egypt; Muscat in Oman; Islamabad, Lahore and Peshawar in Pakistan; and Dhaka in Bangladesh.