Air Arabia delivers track record 2019 net profit of over AED 1 Billion

Business

Air Arabia delivers track record 2019 net profit of over AED 1 Billion

Air Arabia (PJSC), the Middle East and North Africas first and biggest inexpensive carrier, has announced its economic outcomes for the full year ending 31 December 2019, reflecting a record yr of profitability and persisted growth.

Air Arabia reported a track record net profit of AED 1 billion for the full year ending December 31, 2019, an increase of 80 per cent in contrast to the net profit registered in 2018 (Excluding the impairment accounting treatment that Air Arabia took in 2018). The airlines turnover for the full year 2019 reached AED 4.75 billion, an increase of 15 per cent in contrast to the turnover registered in the full year 2018.

The robust full year monetary outcomes have been backed by solid boom in passenger demand with Air Arabia serving more than 12 million passengers from its 4 hubs in the UAE, Morocco and Egypt, an increase of 10 per cent in contrast to the eleven million passengers carried previous year. The average seat load factor or passengers carried as a proportion of available seats for the full year elevated 2% at an amazing 83 per cent.

Air Arabias Board of Directors proposed a dividend distribution of 9 per cent of share capital, which is equal to 9 fils per share. This idea was made following a meeting of the board of directors of Air Arabia and is concern 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: The year 2019 was a difficult year for the aviation industry worldwide. The international economy persisted a slowdown in key global markets while escalating geo-political pressures persisted to have an impact on the trading environment. Despite all that, we are proud that Air Arabia managed to deliver a track record year in its young history and to cross, for the first time, the AED 1 Billion mark in profitability.

He added: Our target on expanding into new markets blended with elevated operational efficiencies has led to another year of sustained increase and profitability for the airline. The robust performance in 2019 is a testament to the power of the business model we operate and the carriers management team.

In the fourth quarter ending December 31, 2019, Air Arabia reported a net profit of AED 199 million while the turnover for the last quarter 2019 reached AED 1.14 billion. Air Arabia flew over 2.9 million passengers from its four hubs in the UAE, Morocco and Egypt in the last quarter 2019, an increase of 8 per cent in contrast to 2.7 million passengers carried in the same quarter previous year. The average seat load aspect for the same quarter elevated 2% and stood at an incredible 81 per cent.

The notable profit that Air Arabia performed in 2019 was complemented a with lower fuel rate in the last quarter as well as much less volatile currency movement in contrast to previous year. The results have been additionally supported by higher client demand, improved yield margins and were blended with higher fleet utilization and stable cost control measures adopted by the management team.
Al Thani concluded: While Air Arabia managed to register record fourth quarter and full year 2019 performance; going forward, we stay targeted on driving operational efficiency throughout board, exploring possibilities and ventures that will best serve the airlines ambitious growth plans while delivering most fulfilling value to our clients and shareholders.

In 2019 Air Arabia acquired three brand new Airbus A321 neo LR airplanes bringing its total fleet size to 55 aircraft and added sixteen new routes throughout its hubs. In the fourth quarter 2019, Air Arabia signed an agreement with Etihad Aviation Group to launch Air Arabia Abu Dhabi, the capitals first inexpensive carrier as well as placed a USD14 billion order with Airbus for 120 aircraft. The carrier additionally won Best Low-Cost Airline in Middle East/Africa at the AirlineRatings.com Airline Excellence Awards; and Adel Al Ali, Group Chief Executive Officer, was announced the winner of 2020 Laureate Award from Aviation Week Network for Air Arabias Airline Strategy.

Now in its 16th year of successful operations, Air Arabia operates flights to over 170 destinations, from four distinctive hubs spread in the UAE, Morocco and Egypt.