Air Arabia results demonstrate strong performance

The Sharjah airline’s net profit for the first nine months of 2014 stood at $136 million (AED 498 million), up 46 per cent reported in the corresponding period of 2013. 
For the nine months ending September 30, 2014, the airline posted a turnover of $768 million (AED 2.8 billion), an increase of 17 per cent against 2013.
The low-cost aviation pioneer served over 5.1 million passengers in the period, a 13 per cent year-on-year increase. The average seat load factor – or passengers carried as a percentage of available seats – for the same period stood at an impressive 82 per cent.
“Air Arabia’s excellent performance for the year to date demonstrates the strength of its underlying business model and the effectiveness of its growth strategy,” said Sheikh Abdullah Bin Mohammed Al Thani, chairman of Air Arabia (pictured right). “Our focus on expanding both our operational footprint and our route network has created a dynamic platform able to respond to customer demand and seize new commercial opportunities”.
Air Arabia’s net profit for the third quarter of 2014 was $68.7 million (AED 251 million), up 22 per cent.
“The record third quarter performance is a reflection of the company’s commitment to its core values underlined by its operational efficiency and unique value preposition” Al Thani said, “Despite ongoing political uncertainty in parts of the region adding to the challenge presented by fluctuating trend in fuel prices; we remain highly confident about the long-term prospects for the industry in the MENA region and our ability to march ahead with our growth plans while delivering our value-for-money promise to our customer’s everyday.”
Air Arabia, completed 11 years of operation last month, has added two new routes to its global network during the third quarter of 2014. From its primary hub in Sharjah, the airline commenced services to Antalya in Turkey, while direct services to Chittagong in Bangladesh began from its recently opened Ras Al Khaimah hub.
Analyst Saj Ahmad commenting on the results said: “Air Arabia's performance for the first nine months of 2014 highlights the robustness of the low cost travel market in the GCC and with passenger figures reaching some 5.1m for the period, that 13% rise in traffic is met with strong financial numbers to support the airline's continued drive for expansion.

“Key to the strong profitability is the 82% load factor on the back of a 17% hike in turnover to AED 2.8bn as well as rising revenue per passenger on the back of healthy forward bookings too.
“Customers in the GCC are seemingly spoiled for choice when it comes to low cost travel and with Air Arabia being the first true LCC in the region, it has benefitted from its early market appearance to become synonymous for cheap, affordable travel out of a less congested Sharjah Airport.
“However with Flydubai just down the road who are expanding even faster than Air Arabia, the onset of direct competition between the two leaves customers with more choice and value-driven options. In a nutshell, there is more than enough market space for both to expand and thrive and Air Arabia's figures highlight that to great effect.”