Air Arabia Posts Net Profit of $410 Million in 2023

Riding on the growing demand for air travel, Sharjah’s Air Arabia, the first and largest low-cost carrier (LCC) operator in the Middle East and North Africa, on Wednesday said that it has achieved double-digit growth in profitability and passenger numbers.

The airline has reported a record net profit of $410 million for the full year ending 31 December 2023, representing a 27% increase compared with $330 million recorded in 2022. Moreover, the airline’s turnover for the same period reached $1.63 billion, reflecting a 14% increase compared with $1.42 billion registered in 2022.

Air Arabia Chairman Sheikh Abdullah Bin Mohamed Al Thani said that 2023 has been a remarkable year for the airline, which has successfully maintained its growth momentum from the previous record-breaking year and achieved exceptional financial and operational results.

The significant milestones attained in terms of growth, revenue, and profitability serve as a testament to Air Arabia’s robust business model, competent management team, and effective growth strategy.

He continued: “Despite the numerous geopolitical and economic challenges faced by the global aviation industry, Air Arabia group managed to sustain its strong growth in 2023. This was achieved through the increase of operating capacity and the addition of new routes across our global network from all our hubs. We take pride in the fact that Air Arabia’s value-driven product and services now cater to a broader customer base and reach more markets.”

New Routes Introduced

Air Arabia also demonstrated its commitment to robust growth by expanding operations across its seven operational hubs and introducing 26 new routes within its global network. This strategic expansion resulted in an increase in operational capacity, which was further complemented by an impressive 31% surge in the number of passengers carried across the group, reaching a remarkable 16.7 million passengers.

At the end of Q4-2023, Air Arabia reported a net profit of $61.26 million, 37% less than the $96.93 million recorded in the same quarter in 2022, which had witnessed record high yield margins. The turnover for the last quarter of 2023 increased by 11% to reach $420 million and the seat factor for the quarter remained strong at 81%.

Al Thani continued: “Despite the softening in yield margins during the last quarter of the year and the ongoing challenges in the industry’s supply chain, Air Arabia demonstrated resilience by registering a solid profitability while maintaining an impressive seat load factor and growth in revenue and passenger numbers.”

“This outstanding performance serves as a testament to Air Arabia’s operational and commercial strategy, as well as its unwavering commitment to consistently delivering genuine value to its customers,” he added.