Air Arabia Reports First Half Loss of AED 169 Million on 53 Percent Revenue Decline to AED 1.02 B
Air Arabia reported on Monday a relatively modest loss of AED 169 million for the first half of 2020. The largest Middle East low-cost carrier’s revenue declined 53 percent year-over year from AED 2.173 billion to AED 1.021 billion.
On Monday (August 10, 2020), Air Arabia (PJSC) reported a first half (H1) loss of AED 169 million (US $46 million) largely attributable to the impact of the global COVID-19 pandemic. The LCC’s revenue for the half declined 53 percent to AED 1.021 billion (US $277.9 million). During H1, Air Arabia served 2.48 million guests from all four of its hubs, a decrease of 57 percent compared to the first half of 2019. The carrier’s second quarter operations largely relied on repatriation, charter and cargo flights resulting in lower year-over-year revenues of AED 120 million (US $32.7 million) and a Q2 loss of AED 239 million (US $65.1 million). In Monday’s announcement, Air Arabia’s Chairman, Sheikh Abdullah Bin Mohamad Al Thani, said,
“Air Arabia started the year 2020 with strong performance promising another year of growth and profitability. However, the unprecedented impact of COVID-19 left airlines worldwide battling the strongest challenge in its history. The full impact of COVID-19 on airline operations was fully materialized in the second quarter as a result of border closures and flight suspension across all key markets. The fact has led airlines to focus on controlling cost while supporting global relief efforts with repatriation and aid flights.
“Air Arabia’s robust business model allowed the management team to act fast and take necessary measures to control cost and enhance liquidity while operating a mix of commercial flights where possible. These early measures have resulted in preserving cash and limiting net loss of the first half to acceptable levels, while still being able to mobilize people during this intricate time and support repatriation efforts. The prospects of the global aviation industry remain strong and we will continue to play a vital role in the global economic recovery. While we started to see gradual opening of selective markets around the world, it is now clear that COVID-19 will continue to have a lasting impact on the aviation industry and the path to recovery is expected to be gradual. At Air Arabia, while we remain in a strong position weathering the COVID-19 impact, we continue to look at this challenge with a long-term view keeping business continuity as the prime focus.”
Currently, Air Arabia operates a mix of scheduled, repatriation, charter and cargo flights across their hubs in the UAE Morocco and Egypt. In July 2020, Air Arabia launched Air Arabia Abu Dhabi, the UAE capital’s first Low-cost carrier (LCC). The carrier has also enhanced the customer experience journey with health and safety measures that are aligned with the highest international standards. Additionally, all airport bases have implemented health and safety protocols to ensure the health and well-being of Air Arabia’s guests throughout their travels.
Source: Air Arabia