Air Arabia reports strong Q1 with $96.6m net profit, up 34%

14/05/2025 06:25 AST

Air Arabia, the first and largest low-cost carrier (LCC) operator in the Middle East and North Africa, has reported a strong first quarter of 2025 financial and operational results, as the airline continued to expand its network and further strengthening its leadership position in the market.

Air Arabia reported a net profit of AED355 million ($96.65 million) for the first three months ending March 31, 2025, an increase of 34 percent compared to AED266 million in the corresponding quarter in 2024.

In the same period, the airline posted a turnover of AED1.75 billion, a 14 percent increase compared to the first quarter of last year. More than 4.9 million passengers flew with Air Arabia Group between January and March 2025 across the carrier's operating hubs, an increase of 11 percent compared to the total number of passengers carried in the first quarter of last year, while the airline's average seat load factor - or passengers carried as a percentage of available seats - during the first three months of 2025 stood at an impressive 84% per cent.

Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, said: "The strong start to 2025 reflects Air Arabia's continued resilience and strategic agility in navigating a constantly evolving regional and global landscape. Our robust financial and operational performance in the first quarter underscores the success of our low-cost business model, the effectiveness of our disciplined cost management, and our unwavering commitment to operational efficiency and delivering exceptional value to our customers."

The first quarter net profit was supported by strong passenger demand and steady revenue growth, despite the impact of seasonality shift due to the month of Ramadan, fuel price volatility, currency fluctuations in key markets, and ongoing supply chain challenges that contributed to higher inflationary costs across the industry.

Al Thani added: "Despite ongoing regional and global challenges including geopolitical and economic uncertainties, Air Arabia continues to deliver strong performance while expanding its network and maintaining high levels of service reliability. These results reflect the Group's solid fundamentals, its ability to deliver true value, and its continued progress toward growth while actively shaping the evolving aviation landscape."

First quarter highlights:

 Air Arabia's total operating fleet expanded to 83 Airbus A320 and A321 aircraft across all hubs.

 Two Airbus A320 aircraft were added to the fleet in January 2025 to strengthen the fleet capacity.

Network
 Air Arabia added a total of 7 new routes to its global network in the first quarter of the year 2025 bringing the total network size to 217 routes from all six operating hubs.

 The seat capacity available across all hubs increased by 11% during the first quarter of 2025 compared to the same period last year.

 AED5.3 billion in cash and cash equivalent.

 Published the comprehensive 2024 ESG Report in March.

 Introduced RNP (Required Navigation Performance) visual procedures at Sharjah, Abu Dhabi, and Ras Al Khaimah airports, approved by the UAE GCAA, to enhance landing efficiency and reduce fuel burn and emissions.

 Ranked in the 'Leader' category by MSCI ESG Ratings with an "AA" score, placing Air Arabia among the top global airlines as of April 2025.

 Air Arabia Corporate Social Responsibility Program "Charity Cloud" commenced operations of two Clinics in Bangladesh and Egypt, expanding access to essential healthcare services for those in need.

Outlook
Al Thani concluded: "We remain committed to our strategic growth plans for 2025, focused on expanding connectivity, exploring new market opportunities, and delivering a seamless, value-driven travel experience to our customers. Our confidence in the low-cost business model remains strong, as we continue to drive value for both our shareholders and customers in the quarters ahead."

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