Air Arabia record net profit of over 1 billion AED in 2019

Air Arabia (PJSC), the Middle East and North

Air Arabia (PJSC), the first and largest economy airline in the Middle East and North Africa region, today announced its financial results for the fiscal year ending on December 31, 2019, which came to reflect the company’s record rates of profits and continued growth.

Air Arabia achieved a record net profit of 1 billion UAE dirhams during the fiscal year ending on December 31, 2019, an increase of 80% compared to 2018, in isolation from the accounting procedure for allocations taken by Air Arabia in 2018, and the company's revenue during the full fiscal year increased by 15% to reach 475 billion dirhams, compared to revenues recorded during the fiscal year 2018.

The strong financial results during the fiscal year 2019 came, driven by the high demand for the company's flights, where Air Arabia provided services to more than 12 million passengers from its four operations centers in the United Arab Emirates, Morocco and Egypt, registering a 10% increase in the number of travelers compared to the number of passengers in Last year, which amounted to 11 million passengers, seat occupancy rate - the ratio of the number of passengers to the number of available seats - for the fiscal year 2019 increased by 2% to 83%.

The board of directors of Air Arabia recommended distributing 9% of the company’s capital as dividends to shareholders, i.e. 9 fils per share, and this proposal was presented after the meeting of the Air Arabia’s board of directors, as this recommendation will be submitted for approval by shareholders during the next annual general meeting.

Sheikh Abdullah bin Mohammed Al Thani, Chairman of Air Arabia’s Board of Directors, said that the year 2019 was full of many challenges for the aviation sector around the world, as the global economy faced a slowdown in several major markets and the escalating geopolitical pressures continued to affect the system of trade exchange, and despite all that we pride ourselves in Air Arabia. Our ability to cope with these conditions and achieve record financial results in the history of the company exceeded for the first time ever a billion AED.

He added, “Our continuous focus resulted in expanding into new markets and continuing to improve the operational efficiency for a new year full of profitability and sustainable growth. This strong performance in 2019 confirms the strength of the company's business model and the efficiency of the management team.”.

During the last quarter of 2019 ending on December 31, Air Arabia recorded a net profit of 199 million dirhams; the company's revenues during the last quarter of 2019 amounted to 114 billion dirhams, and the company transported more than 29 million passengers from its four operations centers in the United Arab Emirates and Morocco And Egypt during the last quarter of 2019, an increase of 8% compared to the number of passengers who were transported during the same period in 2018, which amounted to 27 million passengers, and the rate of seat occupancy for the last quarter increased by 2% to reach 81%.

The decrease in the cost of fuel during the last quarter contributed to the support of the record profit rate achieved by Air Arabia in addition to the stability of currency movements compared to the fluctuations that we witnessed last year. The fourth quarter was supported by increased demand for the company's flights and a strong improvement in revenue margins in addition to the good use of fleet effectiveness And cost control procedures adopted by the management team.

Sheikh Abdullah bin Mohammed Al Thani concluded by saying, 'Air Arabia' succeeded in achieving record performance in the fourth quarter and the full fiscal year 2019, and we, on our part, will continue our focus on enhancing operational efficiency in all aspects of our work and exploring new opportunities and entering into projects that serve the company's ambitious growth plans at the time He himself provides added value to our clients and provides the best return on investment for our shareholders.

Also in 2019, Air Arabia received three Airbus A321 New Long Range A321neo LRs, increasing the number of fleet aircraft to 55 aircraft, adding 16 new destinations from its four operations centers, and during the last quarter of 2019 the company signed an agreement with Etihad Aviation Group For the launch of Air Arabia Abu Dhabi, the first economic airline in the capital, and the company signed an order for aircraft with a market value of $ 14 billion to buy 120 Airbus aircraft, and the company won the title of the best economic airline in the Middle East and Africa by the global website AirlineRating.com

 To excel in the aviation sector.

Adel Al Ali, Group CEO, also received the prestigious Laureate 2020 Award from Aviation Week Network in honor of the company’s exceptional strategy.

Air Arabia has entered its sixteenth year since the launch of its successful operations and currently operates flights to more than 170 global destinations from its four operations centers in the United Arab Emirates, Morocco and Egypt.