Arab News
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times, Mon, Feb 17, 2025 | Shaban 18, 1446
Air Arabia posts record Dh1.6 billion pre-tax net profit, 11% total turnover growth
Emirates: Air Arabia, the first and
largest low-cost carrier operator in the Middle East and North Africa, today
announced its financial and operational results for the full year ending
December 31, 2024.
The airline posted a record pre-tax net profit of
Dh1.6 billion, reflecting a 4 per cent increase compared to Dh1.5 billion in
2023. Total turnover for the year surpassed Dh6.63 billion, marking an 11 per
cent growth from Dh6 billion in 2023.
In 2024, Air Arabia reinforced its commitment to expansion and operational
excellence by growing its network across six hubs and adding 31 new routes. This
strategic expansion led to a 13 per cent increase in operational capacity and a
12 per cent rise in total passengers carried, reaching 18.8 million across the
group. The airline also reported a 2 per cent increase in average seat load
factor, reaching 82 per cent, further underscoring the sustained strong demand
for Air Arabia’s value-driven, low-cost services.
Air Arabia’s Board of Directors has proposed a
dividend distribution of 25 per cent of share capital, equivalent to 25 fils per
share. This proposal was made during a recent board meeting and is subject to
approval by Air Arabia’s shareholders at the upcoming Annual General Meeting (AGM).
Sheikh Abdullah Bin Mohamed Al Thani, Chairman of
Air Arabia, said: “2024 has been a record-breaking year for Air Arabia Group,
marked by significant expansion and an increased footprint across all key
markets.”
He continued: “Despite the geopolitical tensions
and economic challenges impacting the region, Air Arabia Group has successfully
sustained its strong growth trajectory in 2024. This was driven by increased
operating capacity, the launch of new routes, and continued network expansion
from all our hubs.”
In the fourth quarter ending December 31, 2024,
Air Arabia reported a record net profit of Dh351 million, marking a 56 per cent
increase compared to Dh225 million in the same quarter last year. Total turnover
for the fourth quarter of 2024 rose 7 per cent to Dh1.65 billion, driven by an
11 per cent increase in passenger numbers, as the airline carried over 4.7
million passengers across all hubs during the quarter. Meanwhile, the seat load
factor increased by 2 per cent reaching a strong 83 per cent reflecting
sustained demand for Air Arabia’s services.
Al Thani continued: "The fourth quarter of the
year was remarkable for Air Arabia, as we successfully expanded our network
while maintaining solid margins. This strategic growth, coupled with rigid cost
control and strong operational efficiency, resulted in an outstanding
performance for the quarter”.