Business

Air Arabia (PJSC), the first and largest low-cost carrier (LCC) operator in the Middle East and North Africa, today announced a record financial results for the fourth quarter and for full year ending 31 December 2021, despite the prevailing impact of the pandemic that continued throughout the year.

Air Arabia reported a net profit of AED 720 million for the full year ending December 31, 2021, an increase of 475 per cent compared to AED 192 million net loss registered for the full year 2020, which was heavily impacted by COVID-19 pandemic restrictions on air travel. The airlines turnover for the full year 2021 reached AED 3.17 billion, an increase of 71 per cent compared to the AED 1.85 billion registered for the full year 2020.

The financial and operational results achieved in 2021 were backed by ease of travel restrictions and recovery in demand for air travel. Air Arabia served more than 6.7 million passengers in 2021 from its five hubs in the UAE, Morocco and Egypt, an increase of 54 per cent compared to the 4.3 million passengers carried last year. The average seat load factor or passengers carried as a percentage of available seats for the full year remained strong at 73 per cent.

Air Arabias Board of Directors proposed a dividend distribution of 8.5 per cent of share capital, which is equivalent to 8.5 fils per share. This proposal was made following a meeting of the board of directors of Air Arabia and is subject to ratification by Air Arabias shareholders at the companys upcoming Annual General Meeting.

Commenting on the results, Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, said: Air Arabias full year record profitability is a testament to the strength of the business model we operate, the groups management team, as well as the diversification and growth strategy adopted. The year 2021 continued to be challenging for the aviation industry worldwide because of the lasting impact of the COVID-19 pandemic and the restrictions it imposed on air travel. Despite that, we are proud that Air Arabia managed to deliver such a performance signalling a steady recovery for the industry.

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