(MENAFN- Khaleej Times) Low-cost carrier Air Arabia posted on Thursday an eight per cent surge in net profit to Dh110 million in the first quarter ending March 31, 2018, compared to the corresponding 2017 figure of Dh102 million.
The Middle East's largest budget carrier said in a statement that it continued to deliver solid commercial and operational results as it flew than two million passengers between January and March 2018, in line with the record number of passengers carried in the first quarter of last year.
The airline's average seat load factor - or passengers carried as a percentage of available seats - during the first three months of 2018 stood at an impressive 80 per cent, the Sharjah-based airline said.
Sheikh Abdullah bin Mohamed Al Thani, Chairman of Air Arabia, said the strong financial performance for the first quarter is a reflection of the robust business model that the budget carrier operates and is driven by a clear strategy for growth.
"The strong passenger demand combined with the solid cost control measures that we took in driving cost margins lower continue to positively impact the financial performance of the carrier," he said.
Al Thani said as the airline continues to witness strong customer appeal for its services, it remains committed to investing in innovative and value added products that will provide customers with unmatchable value while traveling by air. "We remain optimistic about the prospects of low cost air travel in the wider region and our ability to continue to report sustained profitability and achieve solid growth margins across our network".
In 2017, Air Arabia's net profit surge 30 per cent to Dh662 million compared to Dh509 million in 2016. Turnover for the year reached Dh3.74 billion, while the carrier flew over 8.5 million passengers.
In the first quarter, Air Arabia added three new routes from its hubs in the UAE and Egypt in the first three months of 2018, with flights commencing from Sharjah to Moscow Sheremetyevo in Russia and to Jeddah and Kuwait from Sohag in Egypt. This was followed by the announcement of new flights from Sharjah to Qabala in Azerbaijan; Izmir and Bodrum in Turkey staring June 2018 and to Grozny in Russia starting April 2018.
The carrier has also received the 'Corporate Editor Choice Award' at the 2018 AirTransport Awards demonstrating Air Arabia's continued commitment to passenger satisfaction and development within the industry.
Recently, chief executive Adel Ali said the carrier would add more destinations and could order around 100 narrow-body aircraft this year, thanks to rising demand in Egypt and other hubs. The airline is considering placing new orders for the first time in several years to support future growth.
"It doesn't necessarily have to be a purchase order. The leasing market is pretty good," Ali was quoted as saying in an interview in Bengaluru.
At present, Air Arabia operates 113 weekly flights to 13 destinations in India. The carrier said after the expansion of the existing bilateral seat capacity on the India-Sharjah route, it is planning to open new routes in India.
In 2017, Air Arabia added 21 new routes to its global network from its five operating hubs in the Middle East and North Africa. The carrier took delivery of four new aircraft and ended the year with a fleet of 50 Airbus A320 aircraft operating to 140 routes across the Middle East, Africa, Asia and Europe.
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Issac John Associate Business Editor of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.
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