Profits at Air Arabia Up 35.6%

Sharjah-based Air Arabia, has reported a net profit of AED 510 million for the financial year ‎ending December 31, 2008, compared to a net profit of AED 376 million in 2007, ‎an increase of 35.6%.‎

The low cost airline posted a turnover of AED 2.066 billion in 2008, up 61% ‎compared to AED 1.283 billion in 2007. Passenger average load factor – ‎passengers carried as a proportion of available seats – stood at 85%.

Overall, a total of 3.6 million passengers chose to fly with Air Arabia in ‎‎2008. This is an increase of 33% compared to 2.7 million passengers in ‎‎2007.‎

For the fourth quarter of 2008, Air Arabia posted a net profit of AED 136 million, ‎up 45.4% compared to AED 93.49 million during the fourth quarter of ‎‎2007. For the fourth quarter of 2008, the carrier posted a turnover of AED 571 ‎million, up 53.3% compared to AED 372.37 million in same period of 2007. ‎During the fourth quarter of 2008, the airline served 959,067 passengers, an ‎increase of 29% compared to 745,000 passengers during the same period ‎in 2007.‎

Commenting on the results, Sheikh Abdullah Bin Mohammad Al Thani, Chairman ‎of Air Arabia, said, "2008 was a landmark year for Air Arabia, and this is reflected ‎in our robust financial results. Air Arabia has managed to sustain growth and ‎announce record profits in 2008; Therefore, the Board of Directors has proposed ‎distributing a 10% cash dividend to the company's shareholders, which ‎allows them to share in Air Arabia's success while maintaining sufficient capital to ‎ensure the implementation of the carrier's long-term growth strategy."

In 2008, Air Arabia introduced seven new destinations, and now serves 44 ‎destinations across the Middle East, North Africa, Indian Subcontinent, Eastern ‎Europe and Central Asia. The carrier also announced its new hub in Morocco ‎that is set to commence operations by the end of first quarter of 2009. Air Arabia ‎also announced the launch of a 300-room budget hotel, and introduced new ‎services such as its early check-in procedure and seat selection.

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