SHARJAH, UAE – The low-cost carrier (LCC) Air Arabia recorded annual net profit of US$408 million (AED1.5 billion) for 2023, marking a significant 27 percent increase compared to the previous year’s US$326 million (AED 1.2 billion).
The company in its financial results for the full year ending December 31 2023 stated that the airline’s turnover for the same period reached US$1.6 billion (AED 6 billion), reflecting a 14 percent increase compared to the US$1.4 billion (AED 5.2 billion) registered in 2022.
Air Arabia’s Board of Directors proposed a dividend distribution of 20 percent of share capital, which is equivalent to 20 fils per share. This proposal was made following a meeting of the board of directors of Air Arabia and is subject to ratification by Air Arabia’s shareholders at the company’s upcoming Annual General Meeting.
Sheikh Abdullah bin Mohamed Al Thani, Chairman of Air Arabia, said, “2023 has been a remarkable year for the airline. Air Arabia has successfully maintained its growth momentum from the previous record-breaking year and achieved exceptional financial and operational results.”
He said, “The significant milestones attained in terms of growth, revenue and profitability serve as a testament to Air Arabia’s robust business model, competent management team and effective growth strategy.”
He added, “Despite the numerous geopolitical and economic challenges faced by the global aviation industry, the Air Arabia group managed to sustain its strong growth in 2023.”
Al Thani said, “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.”
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 US$61 million (AED 225 million), 37 percent less than the US$96 million (AED 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 US$419 million (AED 1.54 billion) and the seat factor for the quarter remained strong at 81 percent.
Al Thani said, “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.”
He said, “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.”