Air Arabia and its subsidiaries produced a strong first six months of 2022, reporting a net profit and revenues that were tenfold those of the same period last year. Geopolitical issues and higher fuel costs had their effect, but the carrier still performed well. Profit and revenues Air Arabia up tenfold.
Air Arabia reported an AED 450.9 million HY1 profit compared to AED 44.2 million between January-June 2021. The operating profit was AED 441.6 million, up from 64.8 million. Revenues were up by 110 percent to AED 2.242 billion from AED 1.068 billion. The group’s airlines, which are based in the United Arab Emirates (Sharjah, Abu Dhabi, and Ras Al Khaimah), Egypt (Alexandria), and Morocco (Casablanca), together carried 5.2 million passengers, 131 percent up from last year. Load factors were up by eleven percent to 79 percent.
The second quarter produced an AED 160.1 million profit. Although significantly up from AED 10.4 million in Q2 2021, the profit is lower than the AED 291 million reported for Q1. The operating profit for Q2 was AED 160.8 million versus AED 20 million last year. At AED 1.114 billion (2021: AED 496 million), revenues were almost on par with those in Q1. Air Arabia carried 2.7 million passengers during the quarter.
The airlines continued to expand their networks across the hubs in the UAE, Egypt, and Morocco, adding sixteen new routes. For this, they had five more Airbus A320ceo’s at their disposal in the UAE and one in Armenia. Including the six A321LRs, the fleet grew to 64 aircraft. Air Arabia Abu Dhabi, the joint-venture with Etihad, announced in July that it had carried 800.000 passengers since the first flight in July 2020. Its fleet of eight aircraft covers a network of 24 routes. India has been featuring prominently on the schedule since Air Arabia Abu Dhabi added more flights in May.
Air Arabia’s joint-venture airline in Armenia, Fly Arna, launched operations in June after receiving its Air Operator Certificate (AOC). The first services with a single A320ceo were flown to Zvartnots (main picture), followed by the first international services to Egypt (Sharm el-Sheikh and Hurghada). Fly Jinnah, the other JV in Pakistan, has yet to launch services but is in an advanced stage of preparations.
While continuing its recovery and expansion, Air Arabia Chairman Sheikh Abdullah Bin Mohamed At Thani is aware of the difficult situation in the industry: “The global aviation industry continues to face geo-political challenges, the impact of higher oil prices, and uncertainty towards full economic recovery. Despite all these challenges, we have full confidence in the business model we operate, and the crucial role that the aviation industry plays in supporting regional and global economic growth”.
