16 May, 2020

Air Arabia first quarter profit sinks by 45%

Air Arabia one of the biggest low-cost airlines in the Middle East has reported its latest figures for the first quarter of 2020 which demonstrated a 45% fall in profits.

The airline reported a net profit of AED 71 million for the three months ending March 31, 2020, based on a turnover of AED 901 million, a 12 % drop compared last year. More than 2.4 million passengers flew with Air Arabia between January and March 2020 across the carrier’s four hubs, down 14 % with an average load factor of 83%.  

Sheikh Abdullah Bin Mohamed Al Thani, Chairman of Air Arabia, said: “Air Arabia witnessed a strong start of the year across the breadth of its operations. However, the impact of COVID-19 pandemic on the global aviation, which materialized in airport closures, travel restrictions and low travel demand, has affected the overall performance of the quarter. Nonetheless, we are glad that Air Arabia still managed to deliver profitability and solid performance during the first quarter of this year”.

He added: “Since the start of the COVID-19 pandemic, we have reacted quickly and took all possible measures to protect our passengers and crew while ensuring we continue to fly safely where we can. Additionally, the management team has taken a series of business decisions to control our fixed and running costs during this period while supporting our business continuity. All these measures are set in motion at a time when airlines around the world continue to battle the biggest challenge faced in the history of aviation”.

Sheikh Abdullah Bin Mohamed Al Thani concluded: “Air Arabia enjoys a flexible and robust business model and is driven by a clear business strategy. While this pandemic remains impacting the world economy and providing very little visibility towards the future, we have full confidence in the strength of the aviation industry worldwide and its crucial role in supporting economic recovery post COVID-19. In the meantime, we continue to make daily decisions that support our business continuity and remain fully engaged with regulators to ensure we can serve our customers while adhering to the highest international safety standards”.

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