Air Arabia reports $9.2m net profit; load factor up in Q1
CONSUMER NEWS
Sharjah-based Air Arabia, one of the largest low-cost carriers in the Middle East and North Africa (Mena) region, has reported a net profit of AED34 million (9.2 million) for the first quarter, a 52 per cent less than the corresponding 2020 figure of AED71 million ($19.3 million) amid Covid's continued impact on the aviation’s industry financial and operational performance.
Announcing the results for the three months ending March 31, Air Arabia said its turnover plunged 37 per cent to AED572 million compared to the corresponding first quarter of 2020.
More than 1.3 million passengers flew with Air Arabia between January and March 2021 across the carrier’s five hubs while the airline’s average seat load factor – or passengers carried as a percentage of available seats – during the first three months of 2021 maintained a high average and stood at 77 per cent, it stated.
Chairman Sheikh Abdullah Bin Mohamed Al Thani said: "We are proud that Air Arabia managed to post another profitable quarter despite the continued impact of the Covid-19 pandemic on the aviation industry worldwide."
"This is a testament to the carrier’s robust business and its management team. Although the tightened restrictions on air travel continued in first quarter of this year, the gradual resumption to selected destinations combined with cost control measures adopted by the carrier helped to deliver profitability during the first quarter of this year," he stated.
"The impact of Covid-19 pandemic on the global aviation industry remains material and of a changing nature, nonetheless, we have full confidence in the fundamentals and the strength of the aviation industry worldwide as well as the crucial role air travel will play in supporting regional and global economic recovery," he added.
Air Arabia pointed out that even as flight resumption during the pandemic remains subject to restrictions and changing travel regulations, it managed to resume operations to a selected number of destinations across its five hubs in the UAE, Morocco and Egypt dueing the three month period.
According to IATA, international passenger traffic fell more than 80% in first quarter compared to pre-pandemic as travel restrictions tightened in the face of continuing concerns over coronavirus spread.
The limited resumption of flights across various markets helped support the first quarter financial and operational performance, remarked Sheikh Abdullah.
"While we remain hopeful that air travel restrictions will ease with the increasing rate of vaccination drives across key markets, Air Arabia remains focused on adopting further measures to control costs and support business continuity during this period while we continue to resume operations where possible," he added.
