Middle Eastern low-cost carrier Air Arabia remains optimistic about its business model, despite increasing operating costs arising from macroeconomic pressures and supply-chain disruptions.
Air Arabia has turned in a Dhs1.54 billion ($420 million) full-year net profit, up by 27% on the previous figure.
The airline generated the surplus on the back of a 14% rise in revenues to Dhs6 billion.
“While the softening in yield margins is expected, the demand for air travel remains strong across all key markets,” the carrier states.
It has expanded its fleet to 73 aircraft, comprising 64 Airbus A320s – distributed between two emirates and four other countries – and nine A321LRs.
Another 120 aircraft are on order with deliveries due to commence this year.
The carrier expanded its network last year to 206 routes from its various hubs.
Chairman Sheikh Abdullah bin Mohamed Al-Thani says the carrier has “successfully maintained its growth momentum” and produced “exceptional” results.
“We remain optimistic about the future of low-cost air travel,” he adds. “We have full confidence in Air Arabia’s unique business model, operational excellence, and value-driven product.”
