Air Arabia Reports H1 2021 Profit of $12 million on a Five Percent Revenue Increase to $272 Million
Air Arabia has reported a first half 2021 net profit of AED 44 million (US $12 million) on a year-over-year revenue increase of five percent to AED 1.0 billion (US $272 million). Between January and June 2021, over 2.3 million passengers flew with the carrier.
On Monday (August 9, 2021), Air Arabia announced their first half (H1) 2021 financial results for the six months ending June 30, 2021. The carrier reported a H1 net profit of AED 44 million (US $12 million), a 126 percent increase versus H1 2020, on a five percent year-over-year increase in revenue to AED 1.0 billion (US $272 million). During the first half, Air Arabia carried over 2.3 million passengers across five hubs, with an average load factor of 73 percent. For the second quarter, the airline registered a net profit of AED 10 million ($2.7 million), a 104 percent improvement compared to Q2 2020. Air Arabia’s second quarter revenue increased year-over-year by 313 percent to AED 496 million (US $135 million).
In Monday’s announcement, Air Arabia’s Chairman, Sheikh Abdullah Bin Mohamed Al Thani, said,
“Air Arabia’s ability to post a profitable first half 2021, despite the continued impact of the COVID-19 pandemic on the aviation industry worldwide, is a direct result of the cost control measures adopted by the management team and supported by the gradual resumption of operations witnessed in the first half. While flights resumption compared to pre-pandemic are still subject to many restrictions, the second quarter of 2021 witnessed gradual improvement in comparison to same quarter last year, which was heavily impacted by the subsequent cancellation of scheduled flight operations.
“We remain optimistic that the gradual ease on travel restrictions and resumption of operations will continue to help the industry in its path to recovery. Air Arabia remains focused on adopting further measures to control costs and support business continuity during the second half of the year while we continue to resume operations where possible.”
During the first half of 2021, Air Arabia launched new flights from its hubs in the UAE, Egypt and Morocco. Additionally, the airline partnered with Etihad Airways’ Etihad Guest loyalty program, allowing members of either program to benefit from reciprocal points and miles transfers. In July, Air Arabia Group signed an agreement with the Armenian National Interests Fund (ANIF) to launch a new Armenian national airline.
Founded in 2003, Air Arabia is the leading low-cost carrier servicing the Middle East and North Africa (MENA) region. The carrier operates a fleet of 58 new Airbus A320 and A321 Family aircraft and normally serves 170 routes from five hubs in the UAE, Morocco and Egypt. The award-winning airline offers comfort, reliability and low-cost air travel. Air Arabia (PJSC) is listed on the Dubai Financial Market.
Source: Air Arabia