Air Arabia (PJSC), the pioneering and largest low-cost carrier (LCC) in the Middle East and North Africa, announced robust financial and operational results for the second quarter and first half of 2024 on Monday. The airline's continued network expansion has further cemented its market leadership. Air Arabia posted a net profit of Dh427 million for the quarter ending June 30, 2024, a 7% decline from the Dh459 million in the same period of 2023. The airline's turnover rose by 19% to Dh1.65 billion compared to the previous year's second quarter. Over 4.5 million passengers flew with Air Arabia Group between April and June 2024, a 19% increase from the 3.8 million in the same quarter of 2023. The average seat load factor improved by 3%, reaching 79%.
For the first half of 2024 (January to June), Air Arabia reported a net profit of Dh693 million, a 13% decrease from the Dh801 million in the same period of 2023. The airline's turnover increased by 13% to Dh3.19 billion compared to Dh2.82 billion in the first half of 2023. During this period, over 8.9 million passengers traveled with Air Arabia, a 16% growth over the previous year. The average seat load factor stood at 81%.
Sheikh Abdullah bin Mohammad Al Thani, Chairman of Air Arabia, commented on the results: "The solid net profit in the second quarter was fueled by strong passenger demand and revenue growth, highlighting the robust nature of our business and the ongoing appeal of our customer-focused offerings." He noted the challenges faced by the aviation industry, including slower yield growth and rising costs due to economic and geopolitical uncertainties, currency fluctuations, fuel price volatility, and supply chain disruptions, which have increased inflationary pressures. Al Thani emphasized the resilience of Air Arabia's business model and the strength of its management team in sustaining growth and profitability.
Throughout the first half of 2024, Air Arabia expanded its fleet by adding three new aircraft, bringing the total to 77 Airbus A320 and A321 aircraft. The airline also launched 16 new routes across its hubs in the UAE, Morocco, Egypt, and Pakistan. In March, Air Arabia ranked third globally in operating margin at the 'Airline Weekly' World's Most Profitable Airlines index. The airline's liquidity for the first half of 2024 was AED 4.8 billion in cash and cash equivalents.
Air Arabia has fully adopted a circular economy approach for all in-flight service items, ensuring they are biodegradable, and all food and beverage packaging and containers are now 100% recyclable. This initiative reflects the airline's comprehensive strategy to integrate environmental stewardship, social responsibility, and governance excellence into its core operations.
