Net profit is up 70% on 2021
Air Arabia, the first and largest low-cost carrier in the Middle East and North Africa, today announced historic financial results for the year ending 31 December 2022.
Air Arabia reported a net profit of AED1.2 billion for the year, an increase of 70 per cent compared to AED720 million registered for 2021.
The airline turnover for 2022 reached AED 5.2 billion, an increase of 65% compared to AED3.2 billion registered for 2021.
The carrier almost doubled passenger numbers as well as profit. Air Arabia served more than 12.8 million passengers in 2022 from its seven hubs in the UAE, Morocco, Egypt, Armenia and Pakistan, an increase of 90 per cent compared to 6.8 million passengers carried in 2021.
The average seat load factor – or passengers carried as a percentage of available seats – for the full year stood at a high 80%.
Commenting on the results, Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, said: “Air Arabia’s 2022 record profitability is considered the best in the company’s operating history. The remarkable operational and financial performance reflect the carrier’s robust business model and its management team, as well as its discerning growth strategy."
Air Arabia Group maintained its robust growth in 2022 by increasing its fleet size and adding new routes across its global network while launching the operations of its latest joint venture airlines in Armenia and Pakistan.
The carrier took delivery of 10 new aircraft and ended the year with a fleet of 68 Airbus A320 and A321 aircraft and added 24 new routes to its global network in 2022 from its operating hubs in the UAE, Morocco, Egypt, Armenia and Pakistan. It now operates to more than 190 routes across the Middle East, Africa, Asia and Europe.
Air Arabia Group launched operations of its latest joint ventures in June with Fly Arna, Armenia’s national airline, and in October with Fly Jinnah, Pakistan's new low-cost carrier. In addition, Air Arabia Group along with DAL Group signed an agreement to form Air Arabia Sudan, a joint venture company that will be based in Khartoum. The new airline will follow the same low-cost business model providing its customer base with a reliable operation and value-driven product.
In January, Air Arabia was named Airline of the Year at the Air Transport Awards 2022 and was awarded the Most Punctual Airline by Moscow Domodedovo Airport, recognising the airline’s commitment to punctuality. In March, Air Arabia was awarded Four-Star Low-Cost Carrier 2022 rating by APEX, a testament to the quality of service and customer experience provided by the airline.
Al Thani concluded: “While airlines continue navigating various challenges this year, we are confident of the fundamentals of the aviation sector and the underlying demand for affordable air travel. Air Arabia continues to drive its business by a clear strategy for growth, supported by its commitment to continuously maximise value to its customers and shareholders.”
In October, Air Arabia celebrated 19 years of successful operations. Following the record year, Air Arabia’s Board of Directors proposed a dividend distribution of 15 per cent of share capital, which is equivalent to 15 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.