Air Arabia (PJSC), the first and largest low-cost carrier (LCC) operator in the Middle East and North Africa, on Monday announced historic financial results for the full year ending December 31, 2022, almost doubling the profit and number of passengers than previous year.
Air Arabia reported a net profit of AED 1.2 billion for the full year ending December 31, 2022, an increase of 70% compared to AED 720 million registered for the full year 2021.
The airline turnover for 2022 reached AED 5.2 billion, an increase of 65% compared to AED 3.2 billion registered for 2021.
The financial and operational results achieved in 2022 were strongly supported by the growth in number of passengers that exceeded pre-pandemic levels.
Air Arabia served more than 12.8 million passengers in 2022 from its seven hubs in the UAE, Morocco, Egypt, Armenia, and Pakistan, an increase of 90% compared to 6.8 million passengers carried in 2021.
The average seat load factor – or passengers carried as a percentage of available seats – for the year stood at 80%.
Air Arabia's board of directors proposed a dividend distribution of 15% of share capital, which is equivalent to 15 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.
Commenting on the results, Sheikh Abdullah Bin Mohammad Al Thani, chairman of 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.”
He continued: “Air Arabia group maintained its robust growth in 2022 by increasing its fleet size and adding new routes across its global network while launching the operations of its latest joint venture airlines in Armenia and Pakistan.”
In the fourth quarter ending December 31, 2022, Air Arabia reported a net profit of AED 356 million, 24% less than the AED 467 million registered in the same quarter last year, which witnessed record high yield margins and lower fuel prices.
The turnover for the last quarter 2022 reached AED 1.4 billion, an increase of 7% compared to the same quarter last year.
Air Arabia carried more than 3.6 million passengers from its seven hubs in the fourth quarter, an increase of 44% compared to 2.5 million passengers carried in the same period last year. The average seat load factor for the same period stood at 79%, reflecting the stable recovery witnessed in demand for air travel.
Air Arabia added 24 new routes to its global network in 2022 from its operating hubs in the UAE, Morocco, Egypt, Armenia, and Pakistan. The carrier took delivery of 10 new aircraft and ended the year with a fleet of 68 Airbus A320 and A321 aircraft operating to over 190 routes across the Middle East, Africa, Asia, and Europe. Air Arabia Group has also launched operations of its latest joint venture airlines in Armenia and Pakistan. In June, “Fly Arna”, Armenia's National Airline, started its operations from its base in Yerevan and continued to expand its network by adding five new routes; while “Fly Jinnah”, Pakistan new low-cost carrier, started its operations in October and added four domestic destinations.
Air Arabia Group along with DAL Group signed an agreement to form “Air Arabia Sudan”, a joint venture company that will be based in Khartoum.
In January, Air Arabia was named “Airline of the Year” at the Air Transport Awards 2022 and was awarded the “Most Punctual Airline” by Moscow Domodedovo Airport, recognizing the airline's commitment to punctuality.
In March, Air Arabia was awarded “Four-Star Low-Cost Carrier 2022” rating by APEX, a testament to the quality of service and customer experience provided by the airline.
In October, Air Arabia celebrated 19 years of successful operations which transformed the air travel industry in the wider MENA region.