Air Arabia Q4 profit falls but upbeat on low-cost travel

Air Arabia Q4 profit falls but upbeat on low-cost travel

Sharjah-headquartered Air Arabia remains optimistic about the future of low-cost air travel despite reporting a drop in profit in the last quarter of 2023. The no-frills airline reported a net profit of AED225 million ($61 million) in the fourth quarter of 2023, down 37 percent year on year in the last three months of last […]Sharjah-headquartered Air Arabia remains optimistic about the future of low-cost air travel despite reporting a drop in profit in the last quarter of 2023.

The no-frills airline reported a net profit of AED225 million ($61 million) in the fourth quarter of 2023, down 37 percent year on year in the last three months of last year.

The lower profit was due to the softening of yield margins and the ongoing challenges in the industry’s supply chain.

Revenue over the period rose 11 percent year on year to AED1.54 billion.

The airline’s 2023 total net profit rose 27 percent year on year to AED1.5 billion, driven by passenger numbers surged 31 percent year on year to 16.7 million.

The airline expanded operations across its seven operational hubs and added 26 new routes to its global network. Turnover rose 14 percent to AED6 billion last year.

“The global aviation industry continues to face