Air Arabia Reports Record profits in Q2- and H1-2023

Buoyed by growing demand for international travel, Dubai-based Air Arabia, the Middle East & North Africa’s first and largest low-cost carrier operator, has reported a record Q2- and H1-2023 financial and operational results, as the airline continue to demonstrate remarkable performance and growth.

Air Arabia registered a net profit of $124.97 million during the second quarter ending 30 June 2023, an increase of 187% compared to $43.56 million net profit reported for the same period last year. The second quarter net profit also included an exceptional one-off receivable that the airline received from one of its suppliers.

In a statement to Dubai Financial Market (DFM) on Monday, the airline said that the company’s turnover for the same period increased by 25%, as the strong demand for air travel continued, registering an $380 million, compared with $300 million in the corresponding period last year.

More than 3.8 million passengers flew with Air Arabia between April and June 2023 across the carrier’s seven hubs, an increase of 37% compared with the same quarter last year. The airline’s average seat load factor during the second quarter of 2023 stood at an average of 76%.

During the first half of 2023, Air Arabia reported a net profit of $218.08 million, an increase of 78% compared with $122.79 million registered in the corresponding first half of 2022. In the same period, the airline posted a turnover of $770 million, a 26% increase compared to $610 million registered in the corresponding first half of last year.

More than 7.7 million passengers flew with Air Arabia between January and June 2023 across the carrier’s seven hubs, an increase of 47% compared to the same period last year. The airline’s average seat load factor – or passengers carried as a percentage of available seats –stood at an average at 81%.

Effective Business Model

Air Arabia Chairman Sheikh Abdullah Bin Mohamed Al Thani said that the airline’s performance in Q2 of 2023 is a testament to the resilience and effectiveness of the business model the company operates.

“Our steady performance in the first quarter continued to the second quarter underlining the consistency of our growth strategy and operational excellence. Our team’s dedication continues to drive sustained momentum across our businesses, and we are steadfast in our commitment to continue delivering exceptional value to our customers,” Al Thani said.

Throughout the first half of 2023, Air Arabia remained committed to its strategic expansion plan by strengthening the fleet size, adding new routes and new frequencies across all seven operating hubs. The company’s organic approach of network expansion not only strengthened our connectivity but has also unlocked new opportunities for our passengers.

Al Thani concluded: “Despite a changing macroeconomic and geo-political environment that we continue to witness, we remain focused on driving profitability and maintaining efficiency across the breadth of our operations, supported by prudent financial and cost control measures taken by the management team. We remain confident in our ability to drive growth while providing our passengers with the best value-driven travel deals.”

During the first half of the year, Air Arabia added 3 new aircraft to its modern fleet bringing it to a total of 71 owned and leased Airbus A320 and A321 aircraft. During the same period, the carrier has expanded its network by launching 18 new routes across its seven operating hubs in the UAE, Morocco, Egypt, Armenia, and Pakistan.