Air Arabia , the first and largest low-cost carrier (LCC) operator in the Middle East and North Africa, announced a record financial results for the fourth quarter and for full year ending 31 December 2021, despite the prevailing impact of COVID-19 pandemic that continued throughout the year.
Air Arabia reported a net profit of AED 720 million for the full year ending December 31, 2021, an increase of 475 per cent compared to AED 192 million net loss registered for the full year 2020, which was heavily impacted by COVID-19 pandemic restrictions on air travel. The airline’s turnover for the full year 2021 reached AED 3.17 billion, an increase of 71 per cent compared to the AED 1.85 billion registered for the full year 2020.
The financial and operational results achieved in 2021 were backed by ease of travel restrictions and recovery in demand for air travel. Air Arabia served more than 6.7 million passengers in 2021 from its five hubs in the UAE, Morocco and Egypt, an increase of 54 per cent compared to the 4.3 million passengers carried last year. The average seat load factor – or passengers carried as a percentage of available seats – for the full year remained strong at 73 per cent.
Air Arabia’s Board of Directors proposed a dividend distribution of 8.5 per cent of share capital, which is equivalent to 8.5 fils per share. This proposal was made following a meeting of the board of directors of Air Arabia and is subject to ratification by Air Arabia’s shareholders at the company’s upcoming Annual General Meeting.
In the fourth quarter ending December 31, 2021, Air Arabia reported a net profit of AED 467 million compared to AED 20 million in the same period last year. The turnover for the last quarter 2021 reached AED 1.3 billion, an increase of 143 per cent compared to the same quarter last year. Air Arabia carried more than 2.5 million passengers from its five hubs in the fourth quarter, double the number of passengers carried in the same period last year. The average seat load factor increased by 6 per cent, reflecting the increase in demand for air travel witnessed in the last quarter, and stood at an impressive 81 per cent. This is the fifth consecutive profitable quarter that Air Arabia managed to register since the pandemic hit the aviation industry.
Also published on Medium.
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