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Amid impressive network growth, Air Arabia witnesses record net profit

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Air Arabia said their FY'22 net profit was AED 1.2 billion, up 70% from the previous year

Air Arabia recently announced its historical financial results for the entire year ending December 31, 2022 (FY’22), almost doubling the profit and passenger counts of the prior year.

Air Arabia said their FY’22 net profit was AED 1.2 billion, up 70% from the previous year (YoY). The airline’s FY’22 revenue was AED 5.2 billion, a 65% YoY increase.

Over its seven hubs in the United Arab Emirates, Morocco, Egypt, Armenia, and Pakistan, Air Arabia transported more than 12.8 million passengers in 2022, a 90% increase from the 6.8 million passengers it carried in 2021. For the whole year, the average seat load factor, or the number of passengers per available seat, was a record-high 80%.

The Board of Directors of Air Arabia suggested a dividend distribution of 15% of the share capital.

Sheikh Abdullah bin Mohammad Al Thani, Chairman of Air Arabia, commented on the findings, “Air Arabia’s record profitability for 2022 is thought to be the best in the company’s operating history. The impressive operational and financial results reflect the carrier’s robust business model, management group, and deliberate growth strategy. Although 2022 remained challenging, the aviation sector has started to return to normal as airports and airlines worldwide have recovered more quickly from the decline in demand brought on by the pandemic.”

“Air Arabia Group maintained its healthy expansion in 2022 by expanding its fleet size, adding new routes throughout its global network, and starting the operations of its latest joint venture airlines in Armenia and Pakistan, he stated. We are happy that a larger and quickly expanding client base spread across important regional markets may now access Air Arabia’s value-driven products and services,” he remarked further.

The United Arab Emirates (UAE)-based carrier will be launching an international joint venture in Sudan. It will set up a new airline with DAL Group, a Sudanese conglomerate. The JV will be known as Air Arabia Sudan, which will also be another low-cost carrier.

This will be the third such venture announced by Air Arabia since 2021. The company is already partnering with the Armenian National Interests Fund (ANIF) on Fly Arna, which began operations in 2022, while Fly Jinnah is another joint venture with Pakistan’s Lakson Group, which is expected to start its operations shortly.

Air Arabia Abu Dhabi, in partnership with Etihad Airways, has already expanded to a fleet of nine aircraft and is scheduled to grow to 20 by the end of 2023.

Since its launch in 2020, the airline has already added 27 destinations from its hub at Abu Dhabi International Airport (AUH).

Its latest addition is Amman’s Queen Alia International Airport (AMM).

Air Arabia Sudan will be based at Khartoum International Airport (KRT) and use Airbus A320s, although it is as yet unclear as to whether the new carrier will operate aircraft from the existing Air Arabia fleet, or whether more will need to be acquired. As per the JV partners, work is on securing the relevant approvals and licenses and the operations are “scheduled to commence shortly”.

From March 12, 2023, Air Arabia Abu Dhabi will add a three-weekly connection between Jordan and Saudi Arabia.

The route will also support Air Arabia’s pre-existing service between Amman and Sharjah International Airport.

In less than three years since its inception, Air Arabia has already carried over one million passengers. In December 2022, the airline added three new routes to Yekaterinburg and Kazan in Russia and Tashkent in Uzbekistan.

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