Air Arabia reports growth in first quarter profits
Low cost carrier Air Arabia has reported a 13% increase in net profit for the first quarter of 2015.The Sharjah airline which operates from Morocco and Egypt announced its financial results this morning as the airline's route and hub expansion strategy continued to deliver strong financials and healthy passenger number growth.
Low cost carrier Air Arabia has reported a 13% increase in net profit for the first quarter of 2015.
The Sharjah airline announced its financial results this morning as the airline’s route and hub expansion strategy continued to deliver strong financials and healthy passenger number growth.
For the three months ending March 31 Air Arabia reported a net profit of $23.15million an increase of 13 per cent on the previous year. During the same period, the airline’s turnover reached $241 million, an increase of 7%.
1.8 million Passengers flew with Air Arabia between January and March 2015, which is 10% higher than the number of 1.6 million for the corresponding period of last year. The airline’s average seat load factor – or passengers carried as a percentage of available seats – during the first three months of 2015 stood at an impressive 81 per cent.
“We are delighted to record another quarter of strong performance across our operations, with Air Arabia maintaining its steady, long-term growth trajectory,” said Sheikh Abdullah Bin Mohammed Al Thani, chairman of Air Arabia. “The increase in profits coupled with continuous growth in seat factors and ever expanding route strategy is a reflection of Air Arabia’s sustainable business model”.
Air Arabia reached two major milestones in its route and hub expansion strategy in the first quarter of 2015. In January, the airline announced the opening of its fifth global fixed-based operation, located at Amman Queen Alia International Airport in Jordan, reinforcing its market leading position within the Levant region.
Later in the quarter, Air Arabia became the first low-cost airline from the Middle East and Africa to enter the Chinese market when it began regular non-stop services to Urumqi, the largest city in Western China.
Al Thani said: “While the regional political uncertainty combined with the fluctuating oil price continue to pose additional pressure on the aviation industry, we remain focused on expanding operations and entering new markets. We are confident that our appealing product offering and our focus on making air travel accessible to millions of customers across the region will continue to drive our growth in 2015”.
Air Arabia added a total of eight new routes in the first three months of 2015 from the carrier four operating hubs: Urumqi (China), Gizan (Saudi), Multan (Pakistan) and Isfahan (Iran) from Sharjah; Doha (Qatar) and Kathmandu (Nepal) from Ras Al Khaimah; Naples (Italy) and Montpelier (France) from Casablanca.
Another industry milestone was achieved by Air Arabia in March with the launch of the first loyalty program from a regional low-cost carrier. Airewards offers the same simple, transparent and value-packed experience that customers associate with Air Arabia, with points based on money spent rather than distance flown, and able to be earned on any product or service purchased from the airline.