Air Arabia Group reported its highest-ever profit, ending 2022 with a net profit of AED 1.222 billion outperforming the 2019 profit figure of AED 1.008 bn. The airline reported a rise of AED 720 million year-on-year (y-o-y). The airline reported a total revenue of AED 5.242 bn up from AED 3.174 billion in 2021 as it carried 12.8 million passengers versus 6.8 million in the previous year at an 80% load factor.
The airline expanded its route to 24 new destinations reaching a total of 190. The airline reported operating expenses of AED 3.810 billion from AED 2.291 billion, resulting in an operating profit of AED 1.432 billion compared to AED 882.9 million in 2021.
Sheikh Abdullah Bin Mohammad Al Thani, Chairman, Air Arabia, said: “Air Arabia’s 2022 record profitability is considered the best in the company’s operating history. The remarkable operational and financial performance reflect the carrier’s robust business model, its management team, as well as its discerning growth strategy”,
The year 2022 proved to be challenging for the airline. In the financial statement, the Board of Directors said: “The aviation industry is still facing many geopolitical and economic challenges, such as the serious supply chain challenge. There is a noticeable scarcity in technical labor across the sector, shortage in spare parts, longer wait time for specialized maintenance, and even the unavailability of aircraft. The airline has been able to adapt to these challenges thanks to its operational flexibility across all its hubs.”
Air Arabia reported a net profit of AED 356 million in the fourth quarter (Q4) of 2022 as compared to AED 467 million in 2021, due to high yields and low fuel prices. The airline reported a revenue at AED 1.393 AED which was higher than 2021. In Q4 of 2021, the airline reported a revenue of AED 1.302bn. Passengers carried were up to 2.3 million from 1.9 million in the December 2021 quarter
The airline inducted three A321ceos’ and seven A320ceos in 2022 taking the total number of aircraft in the fleet to 68.
Going ahead, the airline management is optimistic at best. “While airlines continue navigating various challenges this year, we are confident of the fundamentals of the aviation sector and the underlying demand for affordable air travel. Air Arabia continues to drive its business by a clear strategy for growth and supported by its commitment to continuously maximize value offering to its customers and shareholders,” Al Thani concluded.