Muscat: Air Arabia, the largest low-cost carrier in the Middle East and North Africa (Mena), has announced a net profit of $47.1 million for the three months ending June, an increase of 128 per cent compared to the corresponding period in 2013.
The financial results, which exceeded analyst expectations, underline the airline's market leading position, strong business model and consistent performance, the airline said.
Air Arabia posted a turnover of Dh915 million in the second quarter, an increase of 15 per cent compared to Dh797 million in the same period of 2013. The airline served over 1.6 million passengers in the second quarter, an increase of 8 per cent compared to the 1.5 million passengers carried in second quarter, 2103. The airline's average seat load factor — or passengers carried as a percentage of available seats — stood at 84 per cent, it said.
The 2014 second quarter financial results represent an all-time high for the airline and were driven by Air Arabia's unique and innovative business practices, especially its dynamic fuel management policy and unrelenting focus on cost management, it said.
More than 3,366,046 passengers flew with Air Arabia in the first half of 2014, an increase of 11 per cent on the same period last year and another record for the company; while the average seat load factor for the first half of this year stood at 83 per cent.
"Air Arabia's outstanding start to 2014 has accelerated in the second quarter as the investments made into our operational capacity and cost management have continued to deliver results," said Sheikh Abdullah bin Mohammad Al Thani, chairman of Air Arabia.
"We have seen an 11 per cent increase in capacity in the first half of this year, yet we have sustained a high average seat factor and seen first half turnover increase by 15 per cent. The average yield for the first half 2014 has also increased by 6 per cent, a record that is not only among the highest in the industry but that also reflects the true low cost management practices that Air Arabia follows," he added.
Air Arabia's 2014 first half financial results have also exceeded analysts' expectations reporting a net profit of Dh248 million for the first half ending June 30. This compares with Dh134 million in the corresponding period of 2013, an increase of 85 per cent.
The carrier's turnover for the first half stood at Dh1.74 billion, an increase of 15 per cent compared to Dh1.52 billion reported in the same period of 2013.