Air Arabia has reported a fourth quarter net profit of AED 225 million (US $61.3 million) on an 11 percent year-over-year increase in revenue to AED 1.54 billion (US $419.4 million). For the full year 2023, the carrier reported a record net profit of AED 1.5 billion (US $408.4 million).
On Tuesday (February 13, 2024), Air Arabia (PJSC) reported their fourth quarter and full year financial results for the period ending December 31, 2023. The carrier reported a fourth quarter net profit of AED 225 million (US $61.3 million) on an 11 percent year-over-year increase in revenue to AED 1.54 billion (US $419.4 million). For the full year 2023, the carrier reported a record net profit of AED 1.5 billion (US $408.4 million) on a 14 percent increase in revenue versus FY 2022 to AED 6.0 billion (US $1.63 billion). At December 31, 2023, Air Arabia had cash and cash equivalents totaling AED 5.2 billion (US $1.42 billion).
In Tuesday’s announcement, Air Arabia’s Chairman, Sheikh Abdullah Bin Mohamed Al Thani, said,
“2023 has been a remarkable year for the airline. Air Arabia has successfully maintained its growth momentum from the previous record-breaking year and achieved exceptional financial and operational results. The significant milestones attained in terms of growth, revenue, and profitability serve as a testament to Air Arabia’s robust business model, competent management team, and effective growth strategy.
“Despite the numerous geopolitical and economic challenges faced by the global aviation industry, the Air Arabia group managed to sustain its strong growth in 2023. This was achieved through the increase of operating capacity and the addition of new routes across our global network from all our hubs. We take pride in the fact that Air Arabia’s value-driven product and services now cater to a broader customer base and reach more markets.
“Despite the softening in yield margins during the last quarter of the year and the ongoing challenges in the industry's supply chain, Air Arabia demonstrated resilience by registering a solid profitability while maintaining an impressive seat load factor and growth in revenue and passenger numbers. This outstanding performance serves as a testament to Air Arabia's effective operational and commercial strategy, as well as its unwavering commitment to consistently delivering genuine value to its customers.
“The global aviation industry continues to face challenges arising from escalating geopolitical tensions, as well as prolonged supply chain disruptions due to shortages in skilled manpower, aircraft, spare parts availability, and other factors that have led to increased operating costs for the sector. Despite navigating these challenges, we remain optimistic about the future of low-cost air travel. We have full confidence in Air Arabia's unique business model, operational excellence, and value-driven product, which continue to attract and serve our growing customer base.”
During 2023, Air Arabia expanded operations across their seven hubs and introduced 26 new routes. The carrier’s total operating fleet also grew to 73 Airbus A320 and A321 aircraft across all hubs. One new aircraft was added to Air Arabia’s Sharjah base in the fourth quarter, and two wet-leased A320s were added during the third quarter. Additionally, four short-term leased A320s were added to the carrier’s Morocco hub during the third quarter to support summer seasonal operations.
Founded in 2003, Air Arabia is the leading low-cost carrier servicing the Middle East and North Africa (MENA) region. The carrier operates a modern fleet of 73 Airbus A320/A320neo and A321neo aircraft from seven hubs in the UAE, Morocco, Egypt, Armenia and Pakistan. The award-winning airline offers comfort, reliability and low-cost air travel. Air Arabia’s fleet is also equipped with ‘SkyTime’, a free inflight streaming service. Customers can also enjoy a wide range of snacks, meals and sandwiches from the onboard ‘SkyCafe’ menu at affordable prices. Air Arabia Abu Dhabi launched service from Abu Dhabi International Airport in July 2020 and currently offers service to around 30 destinations. Air Arabia (PJSC) is listed on the Dubai Financial Market.
Source: Air Arabia