Travel, Tourism & Hospitality Air Arabia Reports First Half Net Income of $ 12 Million
Air Arabia, the first and largest operator of low cost airlines in the Middle East and North Africa, announced a profitable first half (January to June) 2021 despite the continued impact of Covid-19 on financial and operational performance of the aviation industry.
Air Arabia reported net profit of AED 44 million ($ 12 million) for the period, an increase of 126% from the corresponding first half of 2020.
In the same period, the airline posted revenue of AED 1 billion ($ 272 million), an increase of 5% from the corresponding first half of last year. More than 2.3 million passengers flew with Air Arabia between January and June 2021 at the carrier’s five hubs, while the airline’s average seat occupancy factor – or passengers carried as a percentage of available seats – in the first six months of 2021 averaged 73 percent. hundred.
Air Arabia managed to post a profitable second quarter despite the continued impact of the Covid-19 pandemic on industry results. This is the third consecutive profitable quarter the company has managed to record since the pandemic hit the aviation industry.
In the second quarter ending June 30, 2021, Air Arabia recorded a net profit of AED10 million, an increase of 104% from the net loss recorded for the same period last year. The company’s revenue for the second quarter of 2021 increased by 313% as the gradual recovery continued and recorded AED 496 million, compared to AED 120 million for the corresponding period of the year last. More than 940,000 passengers flew with Air Arabia between March and June 2021 through the carrier’s five hubs, while the airline’s average seat occupancy factor in the second quarter of 2021 averaged 70 %.
Sheikh Abdullah Bin Mohamed Al Thani, Chairman of Air Arabia, said: measures adopted by the management team and supported by the gradual resumption of operations seen in the first half of the year.
He added: “Although the resumption of flights from the pre-pandemic period is still subject to many restrictions, the second quarter of 2021 has seen a gradual improvement over the same quarter of last year, which has was strongly impacted by the subsequent cancellation of scheduled flights. We remain optimistic that the gradual easing of travel restrictions and the resumption of operations will continue to help the industry on the road to recovery. “
During the first half of the year, Air Arabia also succeeded in expanding its route network by launching new flights from its hubs in the United Arab Emirates and Egypt. The carrier has also partnered with Etihad Guest, the Etihad Airways loyalty program to allow members of both programs to benefit from reciprocal transfers of points and miles. In July this year, the Air Arabia group signed an agreement with the Armenian National Interest Fund (ANIF) to launch the new national airline of Armenia.
Al Thani concluded: “Air Arabia remains focused on adopting new measures to control costs and support business continuity in the second half of the year, as we continue to resume operations where possible. . “-TradeArabia News Service