Sharjah, Air Arabia, MENA's low-cost carrier, announced its financial results for the full year ending 31 December 2019, reflecting a record year of profitability and continued growth.
Air Arabia reported a track record net profit of AED1 billion for the full year ending December 31, 2019, an increase of 80 percent compared to the net profit registered in 2018 (Excluding the impairment accounting treatment that Air Arabia took in 2018).
The airline's turnover for the full year 2019 reached AED4.75 billion, an increase of 15 percent compared to the turnover registered in the full year 2018, according to Emirates News Agency (WAM).
The strong full year financial results were backed by solid growth in passenger demand with Air Arabia serving more than 12 million passengers from its four hubs in the UAE, Morocco and Egypt, an increase of 10 percent compared to the 11 million passengers carried last year.
The average seat load factor or passengers carried as a percentage of available seats for the full year increased 2% at an impressive 83 percent.
Air Arabia's Board of Directors proposed a dividend distribution of 9 per cent of share capital, which is equivalent to 9 fils per share. This proposal was made following a meeting of the board of directors of Air Arabia and is subject to ratification by Air Arabia's shareholders at the company's upcoming Annual General Meeting.
The remarkable profit that Air Arabia achieved in 2019 was complemented a with lower fuel price in the last quarter as well as less volatile currency movement compared to last year. The results were also supported by higher customer demand, stronger yield margins and was combined with higher fleet utilization and solid cost control measures adopted by the management team.
In 2019 Air Arabia received three brand new Airbus A321 neo LR airplanes bringing its total fleet size to 55 aircraft and added 16 new routes across its hubs. In the fourth quarter 2019, Air Arabia signed an agreement with Etihad Aviation Group to launch Air Arabia Abu Dhabi, the capital's first low-cost carrier as well as placed a $14 billion order with Airbus for 120 aircraft.
Now in its 16th year of successful operations, Air Arabia operates flights to over 170 destinations, from four different hubs spread in the UAE, Morocco and Egypt.
Source: Bahrain News Agency