Air Arabia Announces Third Quarter Net Loss of AED 44 Million on Revenue of AED 294 Million
The airline served 665,456 guests from all five hubs during the third quarter and reported a turnover of AED 294 million. Air Arabia partially resumed scheduled flights across a limited number of network destinations during the period.
Today (November 10, 2020), Air Arabia, the first and largest low-cost carrier (LCC) in the Middle East and North Africa, reported a third quarter net loss of AED 44 million (USD 12 million), largely attributable to the impacts of the global COVID-19 pandemic. Revenue for the third quarter totaled AED 294 million (USD 80 million) and the carrier served 665,456 guests from all five hubs. During Q3, the airline partially resumed commercial flights to a limited number of destinations across their network. Air Arabia limited their third quarter loss through the implementation of strict cost control measures since the onset of the pandemic. In Tuesday’s announcement, Air Arabia’s Chairman, Sheikh Abdullah Bin Mohamed Al Thani, said,
“We are pleased that Air Arabia registered these results in the third quarter amidst the continuing impact of COVID-19 on the travel industry worldwide. The early measures taken by the management team to control overall cost while seizing revenue opportunities under current circumstances helped limit net loss. The third quarter witnessed the resumption of a limited number of flights in selective markets and we are hopeful that more markets will gradually resume in time. We have also launched operations of Air Arabia Abu Dhabi during this unprecedent time reflecting the confidence and commitment we have towards the aviation industry in the UAE and the region.
“The year 2020 continues to be a challenging one for the world economy including the aviation sector. However, the fundamentals of the industry remain very strong and air travel will continue to play a vital role in economic recovery. While at Air Arabia we remain in a strong position to weather the impact of the pandemic, we will continue to gradually resume operations where possible while keeping business continuity as the prime focus”.
During the third quarter, the company launched Air Arabia Abu Dhabi, with service commencing in July with service between Abu Dhabi International Airport to Alexandria, followed by additional routes to Cairo, Sohag, Dhaka, Kabul, Chattogram and Khartoum. The new airline was formed following an agreement with Etihad Airways (the national carrier of the UAE) to establish the capital’s first LCC. Air Arabia Abu Dhabi follows Air Arabia’s business model and complements the services of Etihad Airways by catering to the growing regional low-cost travel market.
Air Arabia operates a mix of scheduled, charter and cargo flights across their hubs in the UAE, Morocco and Egypt. The carrier has upgraded the customer experience journey with the highest international health and safety standards. Additionally, all of Air Arabia’s base airports have upgraded the entire infrastructure to ensure the health and wellbeing of guests and team members.
Source: Air Arabia