Air Arabia Achieves Record AED 1.6 Billion Pre-Tax Profit in 2024
Throughout 2024, Air Arabia expanded its network across six hubs, introducing 31 new routes. This strategic growth led to a 13% increase in operational capacity and a 12% rise in passenger numbers, totaling 18.8 million across the group. The average seat load factor improved by 2%, reaching 82%, indicating strong demand for the airline's low-cost services.
In the fourth quarter ending December 31, 2024, Air Arabia reported a net profit of AED 351 million, a 56% increase compared to the same period in 2023. This performance underscores the airline's resilience and effective management amid industry challenges.
The Board of Directors has proposed a dividend distribution of 25% of share capital, equivalent to 25 fils per share, subject to shareholder approval at the upcoming Annual General Meeting.
Sheikh Abdullah bin Mohamed Al Thani, Chairman of Air Arabia, stated, "2024 has been a record-breaking year for Air Arabia Group, marked by significant expansion and an increased footprint across all key markets. Building on our strong foundation, we have continued to achieve remarkable financial and operational growth, reaffirming the strength of our business model, the resilience of our management team, and the effectiveness of our strategic vision."
In the first nine months of 2024, the airline reported a net profit of AED 1.25 billion, a slight decrease from AED 1.32 billion during the same period in 2023. However, revenue for this period increased by 12% to AED 4.98 billion, up from AED 4.45 billion the previous year. Passenger numbers grew by 13%, with over 14 million travelers, and the average seat load factor rose by 2% to 82%.
Air Arabia added six new Airbus A320 and A321 aircraft to its fleet in 2024, bringing the total to 77. The airline also launched 22 new routes across its hubs in the UAE, Morocco, Egypt, and Pakistan, further strengthening its market presence.
Despite facing geopolitical and economic challenges, including airspace restrictions and inflationary pressures, Air Arabia successfully expanded its network, increased operating capacity, and maintained a strong operating margin. This achievement highlights the resilience of its business model and the strength of its management team.
Sheikh Al Thani concluded, "Throughout the first nine months of 2024, we maintained a strong commitment to growth across all areas of our business and operations. This included expanding our fleet, introducing new routes, and increasing flight frequencies across each of our operating hubs. As we look to the remainder of the year, we remain focused on strategic growth, disciplined cost management, and delivering exceptional value to our customers."
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