Air Arabia delivers record 2023 net profit of $408 mln, up 27 pct

Air Arabia has announced on Tuesday record financial results for the full year ending December 31, 2023. The airline, the first and largest low-cost carrier (LCC) operator in the Middle East and North Africa, achieved double-digit growth in profitability and passenger numbers, showcasing its commitment to growth plans and exceptional financial and operational performance.

Air Arabia reported a record net profit of $408 million (Dh 1.5 billion) for the full year ending December 31, 2023; representing a 27 per cent increase compared to the Dh 1.2 billion recorded in 2022. Moreover, the airline’s turnover for the same period reached Dh 6 billion, reflecting a 14 per cent increase compared to the Dh 5.2 billion registered in 2022.

Expanding operations

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 percent surge in the number of passengers carried across the group, reaching a remarkable 16.7 million passengers.

In the fourth quarter ending December 31, 2023, Air Arabia reported a net profit of Dh 225 million, 37 per cent less than the Dh 356 million 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 percent to reach Dh 1.54 billion and the seat factor for the quarter remained strong at 81 percent.

Sheikh Abdullah Bin Mohamed Al Thani, Chairman of Air Arabia, said: “2023 has been a remarkable year for the airline. Despite the numerous geopolitical and economic challenges faced by the global aviation industry, the Air Arabia group managed to sustain its strong growth . 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.”

Al Thani continued: “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.”