Air Arabia Reports Record Profit of $196 Million on a 71 Percent Increase in revenue to $863 Million
Air Arabia has reported a full year net profit of AED 720 million (US $196 million) on a year-over-year increase in revenue of 71 percent to AED 3.17 billion (US $ 863 million). During 2021, the carrier served 6.7 million guests, up 54 percent versus 2020.
On Monday (February 14, 2022), Air Arabia announced their full year financial results for the period ending December 31, 2021. The carrier reported a record net profit of AED 720 million (US $196 million) on a 71 percent year-over-year increase in revenue to AED 3.17 billion (US $863 million). This compares to a net loss of AED 192 million (US $52.3 million) for 2020. During 2021, Air Arabia served 6.7 million guests with a 73 percent average load factor from their five hubs in the UAE, Morocco and Egypt, a 54 percent increase in passengers versus the full year 2020.
In Monday’s announcment, Air Arabia’s Chairman, Sheikh Abdullah Bin Mohammad Al Thani, said,
“Air Arabia’s full year record profitability is a testament to the strength of the business model we operate, the group’s management team, as well as the diversification and growth strategy adopted. The year 2021 continued to be challenging for the aviation industry worldwide because of the lasting impact of the COVID-19 pandemic and the restrictions it imposed on air travel. Despite that, we are proud that Air Arabia managed to deliver such a performance signalling a steady recovery for the industry.
“The remarkable performance for the fourth quarter was supported by higher customer demand for our value driven product, stronger yield margins, and was combined with the cost control measures adopted by the management team since the start of the pandemic. Air Arabia remains committed to providing customers with the world’s best value driven air travel while focusing on operational efficiency and cost control.
“While we continue to operate under the impact of COVID-19 pandemic on the aviation industry, we remain confident that the ease on travel restrictions will continue to help the industry in its path towards recovery. We have full confidence in the strength of the aviation industry worldwide and its crucial role in supporting economic recovery.”
Based on the carrier’s 2021 profit, Air Arabia’s Board has proposed a dividend of 8.5 percent of share capital (8.5 fils per share), subject to ratification by shareholders at the company’s upcoming AGM.
For the fourth quarter 2021, Air Arabia reported a net profit of AED 4767 million (US $127 million) compared to AED 20 million (US $5.4 million) during Q4 2020, on a 143 percent increase in revenue to AED 1.3 billion (US $353.9 million), versus the same period last year.
In 2021, Air Arabia received one brand new Airbus A321neo LR, expanding their fleet to 58 aircraft, and added 44 new routes. Air Arabia Abu Dhabi added seven new routes, Air Arabia Maroc added 16 new routes, and Air Arabia Egypt added 15 new routes. Additionally, during 2021 Air Arabia Group announced the launch of ‘Fly Arna’, Armenia’s new national airline, in partnership with the Armenian National Interests Fund (ANIF). Another joint venture was announced with Lakson Group for the creation of a new LCC based in Pakistan called ‘Fly Jinnah’, with both ventures to be managed by Air Arabia Group, following their low cost business model.
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 Airbus A320 and A321 Family aircraft and serves over 170 routes from multiple 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