Air Arabia (PJSC), the first and largest low-cost carrier in the Middle East and North Africa, its net profit for the full-year 2010 reached Dh 309.559 million, a decline of 31.5 per cent from Dh 452 million reported in the previous year. Air Arabia’s total turnover for 2010 reached Dh2.08 billion, an increase of 5.5 per cent compared to Dh2 billion reported in 2009.
The airline, now operates service to 67 destinations from three regional hubs, announced its financial results for the 12 months ending December 31, 2010, demonstrating sustained profitability, lasting customer appeal and the strength of its underlying expansion strategy.
These results were announced following a meeting today of the Board of Directors of Air Arabia, who have proposed a dividend distribution of eight per cent of capital, which is equivalent to 8 fils per share. This proposal is subject to ratification by the shareholders of Air Arabia at the company’s upcoming Annual General Meeting.
Further underscoring the significant appeal of its low-cost services, Air Arabia served 4.45 million passengers in the 12 months ending December 31, 2010; an increase of 10 per cent compared 4.06 million passengers in 2009. The carrier’s seat load factor – or passengers carried as a percentage of available seats – also increased in 2010, reaching 83 percent, an increase of 3 per cent compared to 80 per cent reported for the full-year 2009.
The year 2010 continued to witness pressure on yields and higher fuel prices, trends that have impacted the profitability of the sector worldwide. Never the less, Air Arabia 2010 results continued to demonstrate solid profitability, higher revenues and increased passenger numbers and seat load factor.
Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, described the carrier’s positive financial results for 2010 as “extremely encouraging,” adding that the he saw significant growth opportunities in 2011 based on Air Arabia’s ongoing expansion strategy.
“Our ability to continue to report sustained profitability, as well as increasing revenues and passenger traffic, is testament to the strength of our management and underlying business model,” he said. “By providing our customers with a growing range of destinations and value-for-money fares, Air Arabia has demonstrated its ability to thrive in even the most challenging conditions.”
2010 was a year of ongoing expansion for the low-cost carrier, which launched its Alexandria-based Air Arabia ‘Egypt,’ in June. Last year, Air Arabia also introduced service to a range of new destinations from Sharjah, including Kabul, Afghanistan, and Sohag, Egypt.