Net profit at Air Arabia increased by 70 percent in 2022
As the first and largest low-cost carrier (LCC) in the Middle East and North Africa, Air Arabia (PJSC) announced historic financial results on December 31, 2022. As the airline continued to grow, the airline achieved extraordinary financial and operational performance, almost doubling profit and passenger numbers.
Air Arabia reported a net profit of AED 1.2 billion for the full year ending December 31, 2022, up 70 percent from AED 720 million in 2021. In 2022, the airline’s revenue reached AED 5.2 billion, an increase of 65 percent from AED 3.2 billion in 2021. Passenger numbers exceeded pre-pandemic levels in 2022, supporting financial and operational results.
In 2022, Air Arabia carried 12.8 million passengers from its seven hubs in the UAE, Morocco, Egypt, Armenia, and Pakistan, an increase of 90% over 2021. In the full year, the average seat load factor was 80 per cent – or passengers carried as a percentage of available seats.
A dividend distribution of 15% of Air Arabia’s share capital, or 15 fils per share, was proposed by the Board of Directors. Following a meeting of Air Arabia’s board of directors, this proposal is subject to ratification by the company’s shareholders at its annual general meeting.
With record high yield margins and lower fuel prices, Air Arabia recorded a net profit of AED 356 million in its fourth quarter ending December 31, 2022. Turnover for the last quarter of 2022 reached AED 1.4 billion, up 7 percent from last year. More than 3.6 million passengers were carried by Air Arabia from its seven hubs in the fourth quarter, up 44 percent from 2.5 million last year. As a result of the stable recovery in demand for air travel, the average seat load factor stood at an impressive 79 per cent.
From its operating hubs in the UAE, Morocco, Egypt, Armenia, and Pakistan, Air Arabia added 24 new routes in 2022. As of the end of the year, the carrier operated 68 Airbus A320 and A321 aircraft on 190 routes across the Middle East, Africa, Asia, and Europe. Air Arabia Group has also launched joint venture airlines in Armenia and Pakistan. As of June, Fly Arna, Armenia’s National Airline, has expanded its network by adding five airline routes; while Fly Jinnah, Pakistan’s low-cost carrier, has introduced four additional domestic destinations since October.
DAL Group and Air Arabia Group have signed an agreement to form Air Arabia Sudan, a joint venture company based in Khartoum. The low-cost airline will follow the same low-cost business model providing its customer base with a reliable operation and value-driven product.