Air Arabia's Q1 Profit Drops 22% Due To Regional War

(MENAFN- Khaleej Times) Air Arabia's net profit dropped 22 per cent in the first quarter of 2026 to Dh278 million, compared to Dh355 million in the same period last year, impacted by airspace closures due to the regional war.

After the war involving the US, Israel, and Iran broke out on February 28, airlines in the UAE and Gulf countries suspended flights as airspace was closed, severely impacting the aviation and travel sectors.

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The Sharjah-based carrier said it recorded a turnover of Dh1.8 billion during the first quarter of 2026, an increase of 1 per cent year-on-year.

It carried 4.7 million passengers across its operating hubs, a 5 per cent decrease compared to the same quarter last year, while the average seat load factor – passengers carried as a percentage of available seats – rose to 86 per cent, up 2 percentage points year-on-year.

“Despite a challenging first quarter of the year, marked by airspace restrictions and operational disruptions as a result of the conflict in the region, Air Arabia demonstrated strong resilience and agility in responding to rapidly evolving conditions. Our ability to optimise capacity and maintain operational continuity enabled us to effectively manage the impact during this ongoing critical period,” said Sheikh Abdullah bin Mohammad Al Thani, chairman of Air Arabia.

He added:“Despite these challenges, we delivered a solid first-quarter performance, supported by continued strong passenger demand across our network wherever we operated. This reflects the strength of our multi-hub business model, our disciplined cost management, and our ongoing focus on operational efficiency and service excellence.”

During the January–March 2026 period, it operated a fleet of 90 owned and leased Airbus A320 and A321 aircraft across its hubs in the UAE, Morocco, Egypt, and Pakistan.

“Looking ahead, ongoing uncertainty continues to weigh on airline operations across the region and globally, driving fuel price volatility, inflationary costs, and pressure on global supply chains, trade, and logistics. Despite these challenges, we remain confident in the strength of the local and regional economies we serve and will continue to navigate this environment with discipline and agility, while delivering exceptional value to our customers,” Al Thani concluded.

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