Air Arabia profit falls 22% amid fuel and currency woes

Air Arabia profit falls 22% amid fuel and currency woes

UAE carrier Air Arabia reported a 22 percent decline in net profit for the first quarter of 2024 compared to the previous year, citing challenges such as fuel price fluctuations, currency volatility, and a shift in seasonality due to Ramadan. The low-cost carrier reported earnings of AED266 million ($71 million) for the first three months ended March 31, 2024, […]UAE carrier Air Arabia reported a 22 percent decline in net profit for the first quarter of 2024 compared to the previous year, citing challenges such as fuel price fluctuations, currency volatility, and a shift in seasonality due to Ramadan.

The low-cost carrier reported earnings of AED266 million ($71 million) for the first three months ended March 31, 2024, compared to AED342 million a year ago. 

Despite the challenges, the company posted an 8 percent increase in revenue to AED1.5 billion. More than 4.4 million passengers flew across the carrier’s operating hubs — the UAE, Morocco, Egypt, and Pakistan —rising 13 percent from 3.9 million passengers a year earlier. 

The average seat load factor, or passengers carried as a percentage of available seats, reached 85 percent.

Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia, admitted to the ongoing economic and geopolitical uncertainty, seasonality’s impact on business, fuel price volatility, and supply chain