Mixed financial results for Air Arabia

Air Arabia half yearly numbers on a low
Air Arabia half yearly numbers on a low

Recent half yearly results announced by Air Arabia state that the company’s turnover for the first six months of 2015 reached AED 1.75 billion.

However, turnover for the three months ending 30 June 2015, stood at AED 860 m, six percent less than 2014. In the first six months of 2015, Air Arabia flew 3.6 million passengers, up nine per cent as compared with 2014. Similarly, passenger numbers in three months ending 30 June 2015, increased by four per cent to reach 1.8 m.

Net profit during the first half of 2015 reached AED 237 m, while, for three months ending 30 June 2015, it stood at AED 152 million. These figures are respectively four per cent and 12% less than 2014. The dip was mainly driven by pressured yield margins due to market conditions as well as a number of strategic investments made by the airline. The airline’s average seat load factor stood at 79%.

Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia, said: “The economic performance from Russia and CIS countries and impact of oil prices on the global economy in addition to regional political instability have all served to put pressure on yield margins across the entire aviation sector. We are confident that these factors are temporary and will be mitigated in the coming quarters.”

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