The Middle East's largest low-cost airline Air Arabia recorded an eight-fold surge in first-quarter net profit as air travel demand recovered amid a relaxation of pandemic-induced curbs worldwide.
Net profit stood at Dh291 million ($79.23m) in the first three months of 2022, Air Arabia said on Wednesday. The airline's turnover in the first quarter rose 97 per cent to Dh1.12 billion.
“The strong performance we witnessed last year continued in the first quarter of 2022 and was supported by higher customer demand for Air Arabia’s value driven product as well as rigid cost control measures that the airline took since the start of the pandemic,” said Sheikh Abdullah bin Mohammad Al Thani, chairman of Air Arabia.
The airline carried more than 2.4 million passengers between January and March 2022, up 86 per cent annually.
Average seat load factor — or passengers carried as a percentage of available seats — during the first quarter stood at 79 per cent, up 4 per cent compared to the same period in 2021.
The UAE's only listed airline added four new routes from its hubs in the UAE, Morocco and Egypt in the first three months of 2022. It also confirmed that its two new ventures, Fly Arna in Armenia and Fly Jinnah in Pakistan, are expected to be operational by midyear.
“In addition to the lasting impact of Covid-19 on global aviation, the industry continues to face geopolitical challenges, higher oil prices and uncertainty towards full economic recovery,” Sheikh Abdullah said.
“Although all these challenges are of a changing nature, we have full confidence in the business model that we operate, the strength of the aviation industry worldwide, as well as its role in supporting regional and global economic recovery.”
-
Visitors at the Dubai stand on the third day of the Arabian Travel Market held at Dubai World Trade Centre. Pawan Singh / The National -
Visitors at the Etihad stand. Pawan Singh / The National -
A Flynas advertisement on the first day of Arabian Travel Market. -
The Iraq stand. Pawan Singh / The National -
Visitors at the Qatar stand on the first day of Arabian Travel Market. -
Visitors at the Rotana stand. Pawan Singh / The National -
Children's toys on display at the Emirates stand. Pawan Singh / The National -
The Neom stand. Pawan Singh / The National -
The Armani stand. Pawan Singh / The National -
The Flynas stand. Pawan Singh / The National -
Performers dance at the Saudi Arabia stand on the second day of the Arabian Travel Market. Pawan Singh / The National -
Visitors take photos at the flydubai stand. Pawan Singh / The National -
The Jordan stand. Pawan Singh / The National -
The second day of Arabian Travel Market welcomed visitors from around the world. Pawan Singh / The National -
The event is considered a bellwether for the travel industry in the Middle East, offering an insight into the trends that will shape the year ahead. Pawan Singh / The National -
A total of 112 countries looking to revive their tourism numbers will be featured on the exhibition's show floor, from Japan to Jamaica and South Africa to Italy. Pawan Singh / The National -
People visit the South Africa stand at the Arabian Travel Market. Pawan Singh / The National -
A model of the Airbus A350-1000 at the Etihad stand on the first day of Arabian Travel Market held at Dubai World Trade Centre. All photos: Pawan Singh/The National -
More than 1,500 exhibiting companies are taking part in the four-day tourism showcase that will welcome about 20,000 visitors. -
Travel and tourism are starting to show signs of recovery from the impact of the coronavirus pandemic, with many companies starting to ramp up their recruitment as countries reopen their borders. -
Staff from Al Ain Zoo showing some birds and reptiles at the Abu Dhabi stand. -
Saudi Arabia has a major presence at this year's Arabian Travel Market, including representatives from Neom, the kingdom's $500 billion futuristic mega city. -
Arabian Travel Market is considered a bellwether for the travel industry in the Middle East, offering an insight into trends for the year ahead. -
Emirates airline launched its premium economy cabin at Arabian Travel Market. -
The Abu Dhabi stand at Arabian Travel Market was busy on the first day of the event. -
Artists showcasing handmade items at the Abu Dhabi stand. -
Staff from Al Ain Zoo introduce visitors to birds at the Abu Dhabi stand. -
Etihad Airways showcasing its economy class seats at Arabian Travel Market. -
The soaring price of oil and the impact of the war in Ukraine are tempering the travel industry's expected resurgence. -
Staff from Al Ain Zoo show visitors reptiles at the Abu Dhabi stand. -
The Darina holidays stand on the first day of Arabian Travel Market held at Dubai World Trade Centre in Dubai. -
Visitors at the Brussels stand. -
Visitors at the Maldives stand.
Pent-up air travel demand is boosting the aviation industry as pandemic-related travel curbs ease worldwide, the International Air Transport Association (Iata) said.
Total traffic in March 2022 — measured in revenue passenger kilometres or RPKs — was up 76 per cent on March 2021, the aviation trade body said in its monthly report.
Air Arabia is “optimistic” about the financial outlook for 2022 as it expects air travel demand to remain strong this year and next, after two years of dampened appetite during the pandemic, Adel Ali, group chief executive of Air Arabia, told The National at the Arabian Travel Market in Dubai on Tuesday.
“The business seems to be good and yields are on the right side,” he said.
“Fuel is a challenge always when there is a conflict … a good oil price is good for the region because the economy is good and people will have more disposable income to travel.”
