Air Arabia Announces First Quarter 2020 Net Profit of AED 71 million
Air Arabia announced on Thursday a first quarter net profit of AED 71 million ($USD 19.3 million) on a 12 percent revenue decline to AED 901 million (USD$245.3 million). Fourth quarter profit declined 45 percent year-over-year due to the global COVID-19 pandemic.
On Thursday (May 14, 2020), the Middle East and North Africa’s first and largest LCC reported a first quarter 2020 net profit of $19.3 million, a 45 percent year-over year decline. Revenues for the quarter declined 12 percent to $245.3 million. During the quarter, over 2.4 million guests flew with the carrier across its four hubs, a 14 percent decline versus Q1 2019. Despite the COVID-19 pandemic’s impact on demand, Air Arabia maintained a healthy average load factor of 83 percent for the quarter. In Thursday’s announcement, Air Arabia’s Chairman, Sheikh Abdullah Bin Mohamed Al Thani, said in part,
Air Arabia witnessed a strong start of the year across the breadth of its operations. However, the impact of COVID-19 pandemic on the global aviation, which materialized in airport closures, travel restrictions and low travel demand, has affected the overall performance of the quarter. Nonetheless, we are glad that Air Arabia still managed to deliver profitability and solid performance during the first quarter of this year. Since the start of the COVID-19 pandemic, we have reacted quickly and took all possible measures to protect our passengers and crew while ensuring we continue to fly safely where we can. Additionally, the management team has taken a series of business decisions to control our fixed and running costs during this period while supporting our business continuity. All these measures are set in motion at a time when airlines around the world continue to battle the biggest challenge faced in the history of aviation.”
As previously reported, last month the carrier announced that Air Arabia Abu Dhabi had been granted an Air Operating Certificate (AOC), clearing the way for the new Abu Dhabi-based carrier to commence operations when market conditions improve. Air Arabia’s loyalty program, Air Rewards, also recently won the prestigious ‘210 Rising Star Award’ at the 2020 Freddie Awards for the Middle East, Asia and Oceania. This year’s ceremony was held online, and the Freddie Awards are named after the legendary British airline entrepreneur, Sir Freddie Laker.
Source: Air Arabia