Air Arabia Soars with Record AED 1.6 Billion Profit
Air Arabia reports a record profit before tax of AED 1.6 billion for 2024, showcasing significant growth in revenue and passenger numbers.
Summary
Air Arabia announced a record pre-tax profit of AED 1.6 billion for 2024, with an 11% increase in revenue and a 12% rise in passenger numbers.
Air Arabia PJSC, the pioneering low-cost carrier in the Middle East and North Africa, has announced an impressive financial performance for the year ending December 31, 2024. The airline achieved a record pre-tax net profit of AED 1.6 billion, a 4% increase from the previous year. This remarkable achievement is complemented by a total turnover of AED 6.63 billion, marking an 11% growth from AED 6 billion in 2023.
The airline's exceptional performance is attributed to its strategic expansion and operational excellence. In 2024, Air Arabia expanded its network across six hubs, adding 31 new routes. This strategic move resulted in a 13% increase in operational capacity and a 12% rise in total passengers carried, reaching 18.8 million. The average seat load factor also increased by 2%, reaching 82%, indicating strong demand for Air Arabia's value-driven, low-cost services.
Air Arabia's fourth-quarter performance was particularly notable, with net profit jumping 56% to AED 351 million, and quarterly revenue surpassing AED 1.65 billion. This robust performance has led the Board of Directors to propose a cash dividend of 25 fils per share, reflecting confidence in the company's financial health and future prospects.
Given the airline's consistent growth, strategic expansion, and strong financial results, investors may find Air Arabia a compelling opportunity. The company's focus on expanding its route network and maintaining high seat load factors demonstrates its commitment to capturing market demand and enhancing shareholder value. As such, the current market conditions and Air Arabia's robust financial health suggest that holding the stock could be a prudent decision for investors seeking long-term growth.
In conclusion, Air Arabia's 2024 financial results underscore its position as a leading low-cost carrier in the region. With a record profit, increased revenue, and a growing passenger base, the airline is well-positioned for future success. Investors should consider the potential for continued growth and the proposed dividend as factors in their investment decision.
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Summary
Air Arabia announced a record pre-tax profit of AED 1.6 billion for the year ending December 31, 2024, a 4% increase from the previous year. The airline's revenue grew by 11% to AED 6.63 billion, and passenger numbers rose by 12% to 18.8 million. The fourth quarter saw a net profit increase of 56% to AED 351 million, with quarterly revenue exceeding AED 1.65 billion. The Board of Directors proposed a cash dividend of 25 fils per share. In 2024, Air Arabia expanded its network by adding 31 new routes, leading to a 13% increase in operational capacity and a 2% rise in seat load factor to 82%.
