Sharjah, UAE; August 12, 2024: Air Arabia (PJSC), the Middle East and North Africa's first and largest low-cost carrier (LCC) operator, has announced robust financial and operational results for the second quarter and first half of 2024. The airline continues to expand its network, further solidifying its leadership position in the market.
Air Arabia reported a net profit of AED 427 million during the second quarter ending June 30, 2024. While this represents a 7% decrease from the AED 459 million recorded in the same period in 2023, the airline's turnover saw a significant increase. The turnover for Q2 2024 reached AED 1.65 billion, marking a 19% rise compared to the second quarter of the previous year.
Between April and June 2024, over 4.5 million passengers traveled with Air Arabia Group across its operating hubs, reflecting a 19% increase from the 3.8 million passengers carried in the same quarter of the previous year. The airline's average seat load factor — representing the percentage of available seats occupied — rose by 3%, reaching an impressive 79% during the second quarter of 2024.
Commenting on the results, Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, stated: 'The solid net profit recorded in the second quarter was driven by robust passenger demand and revenue growth, underscoring the strong fundamentals of our business and the enduring appeal of our value-driven offerings to customers.'
The first half of 2024 has been particularly dynamic for Air Arabia, with the addition of 16 new routes. This expansion is a testament to the airline's strategic growth initiatives and its commitment to enhancing connectivity for its passengers.
Looking ahead, Air Arabia's performance is expected to remain strong, supported by continued passenger demand and strategic network expansions. The airline's ability to adapt to market conditions and its focus on cost efficiency will likely drive sustained growth.
For investors, Air Arabia presents a compelling case. The company's strong fundamentals, coupled with its strategic expansion initiatives, make it an attractive investment opportunity. While the slight dip in net profit may raise concerns, the overall growth in revenue and passenger numbers highlights the airline's resilience and potential for future profitability.
In conclusion, Air Arabia's Q2 2024 results reflect a well-managed company with a clear vision for growth. Investors looking for a promising opportunity in the aviation sector should consider adding Air Arabia to their portfolios.
