Air Arabia Records Strong Q1 2024 Revenue
In a recent announcement, UAE-based low-cost carrier Air Arabia revealed a robust growth in revenue for the first quarter of 2024, reaching Dh1.54 billion. This represents an 8% increase compared to the corresponding period in the previous year.
Image Source: airinsight.com
Despite encountering several challenges, including a 22% decline in net profit, which amounted to Dh266 million for Q1 2024, the airline experienced a substantial surge in passenger numbers. Over 4.4 million passengers traveled with Air Arabia Group between January and March 2024, marking a noteworthy 13% increase compared to the prior year.
Various factors, such as seasonal fluctuations during Ramadan, elevated fuel costs, currency instabilities, and persistent supply chain disruptions resulting in heightened inflationary pressures across the industry, contributed to these outcomes.
Chairman of Air Arabia, Sheikh Abdullah Bin Mohammad Al Thani, expressed confidence in the airline’s resilience amidst economic uncertainties, underscoring their dedication to operational excellence and value-driven offerings, which have enabled the company to achieve commendable financial and operational performance.
Al Thani reiterated the airline’s commitment to expansion despite prevailing challenges, outlining Air Arabia’s plans to broaden its global network and cater to a wider customer base. During the first quarter of 2024, the airline introduced two new routes to its network, operating with a fleet of 74 Airbus A320 and A321 aircraft.
Furthermore, shareholders endorsed a 20% dividend distribution during the carrier’s 2023 Annual General Meeting, signaling the company’s financial stability and commitment to shareholder value. Air Arabia also reported a liquidity of Dh5 billion in cash and cash equivalents for the first quarter of 2024, reaffirming its financial strength and resilience in navigating market uncertainties.
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