Air Arabia profits slump in Q2
Low-cost airline Air Arabia suffered a 44% decline in profits for the second quarter of 2010, the company has confirmed.The airline’s net profit for the three months ending 30 June stood at Dhs50m compared to Dhs90m in the corresponding period in 2009.In a statement, the airline claimed the decline was in line “with global industry performance, which continues to be impacted by changing market dynamics, characterised by increase in fuel costs and continuous pressure on yield margins”. In the second quarter of this year, Air Arabia posted a turnover of Dhs485m, an increase of 6% compared to Dhs458m in the same period of 2009.The airline served 1,108,310 passengers in the second quarter of 2010, an increase of 11% compared to 1,002,394 passengers in the same period last year. In the three months ending 30 June, Air Arabia’s average seat load factor stood at an impressive 82%, an increase of 4% compared to same period of 2009.”We are pleased with Air Arabia’s solid performance despite overall challenging market conditions,” said Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia. “The airline has embarked upon a phase of organic growth, now operating from three hubs across the region. “We are focused on further expanding our operations while strengthening our value-for-money offerings and innovative products.”In the second quarter of 2010, the airline launched operations from its third hub in Alexandria, Egypt. Air Arabia currently offers service to 65 routes across Europe, the Middle East, Africa and Asia from three hubs in UAE, Morocco and Egypt. The low-cost carrier also announced the formation of Jordan’s first low-cost carrier in a joint venture with Tantash Group.