Air Arabia has announced record-breaking net profit of AED1.5bn ($408m), according to official figures.
It marks a 27 per cent increase compared to the previous year’s AED1.2bn ($327m).
In its financial results for 2023 the low-cost carrier said turnover reached AED6bn ($1.6bn), reflecting a 14 per cent increase compared to the AED5.2bn ($1.4bn) registered in 2022.
Air Arabia record profit
Air Arabia’s Board of Directors proposed a dividend distribution of 20 per cent of share capital, which is equivalent to 20 fils per share.
This proposal was made following a meeting of the board of directors and is subject to ratification by the low-cost carrier’s shareholders at the company’s upcoming Annual General Meeting.
Sheikh Abdullah bin Mohamed Al Thani, Chairman of Air Arabia, said: “2023 has been a remarkable year for the airline. Air Arabia has successfully maintained its growth momentum from the previous record-breaking year and achieved exceptional financial and operational results.
“The significant milestones attained in terms of growth, revenue, and profitability serve as a testament to Air Arabia’s robust business model, competent management team, and effective growth strategy.
“Despite the numerous geopolitical and economic challenges faced by the global aviation industry, the Air Arabia group managed to sustain its strong growth in 2023.
“This was achieved through the increase of operating capacity and the addition of new routes across our global network from all our hubs.
“We take pride in the fact that Air Arabia’s value-driven product and services now cater to a broader customer base and reach more markets.”
In 2023, Air Arabia demonstrated its commitment to robust growth by expanding operations across its seven operational hubs and introducing 26 new routes within its global network.
This strategic expansion resulted in an increase in operational capacity, which was further complemented by an impressive 31 per cent surge in the number of passengers carried across the group, reaching a remarkable 16.7m passengers.
In the fourth quarter, the airline reported a net profit of AED225m, 37 per cent less than the AED356m recorded in the same quarter last year, which had witnessed record high yield margins.
The turnover for the last quarter of 2023 increased by 11 per cent to reach AED1.54bn and the seat factor for the quarter remained strong at 81 per cent.
Al Thani said: “Despite the softening in yield margins during the last quarter of the year and the ongoing challenges in the industry’s supply chain, Air Arabia demonstrated resilience by registering a solid profitability while maintaining an impressive seat load factor and growth in revenue and passenger numbers.
“This outstanding performance serves as a testament to Air Arabia’s effective operational and commercial strategy, as well as its unwavering commitment to consistently delivering genuine value to its customers.”
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