Air Arabia, the first and largest low-cost airline in the Middle East and North Africa, revealed today that it has achieved record financial results over the last quarter and fiscal year ending December 31, 2021, despite the consequences of continuous Covid- 19 pandemic.
Air Arabia recorded a net profit of 720 million dirhams during the financial year ended 31 December 2021, an increase of 475% compared to 2020, which witnessed a net loss of 192 million dirhams as a result of the pandemic. which included imposing restrictions on air travel.
The company’s revenue for 2021 amounted to 3.17 billion dirhams, an increase of 71% compared to revenues recorded in 2020, which amounted to 1.85 billion dirhams.
Outstanding financial and operational results in 2021 were driven by easing travel restrictions and recovering demand for air travel, as Air Arabia offered its services to more than 6.7 million passengers in 2021 from its five operations centers. in the United States. The UAE, Morocco and Egypt, recording a 54% increase in passenger numbers compared to the number of passengers a year ago, which reached 4.3 million passengers. The occupancy rate of seats – the ratio of passengers to the number of available seats – for fiscal year 2021 has maintained a solid level of 73%.
The Board of Directors of “Air Arabia” recommended the distribution of 8.5% of the company’s capital as dividends to shareholders, ie 8.5 fils per share. This proposal was submitted after the meeting of the Board of Directors of “Air Arabia”, where this recommendation will be approved by the shareholders during the next annual general meeting.
Sheikh Abdullah bin Mohammed Al Thani, President of Air Arabia, said: “The strong financial results of Air Arabia over the past year are a testament to the effectiveness of our business model, the excellence of our management team and the effectiveness of our diversification strategy and growth. The challenges facing the global aviation sector continued throughout 2021 with the ongoing consequences of the global pandemic and the restrictions imposed on the air travel sector. Despite these challenges, the Air Arabia group was able to adapt to these changes and to achieve this extraordinary performance, which is also a clear indicator of the pace of continuous recovery of the sector as a whole.
During the last quarter ended December 31, 2021, “Air Arabia” recorded a net profit of 467 million dirhams; Compared to the profits for the same period of 2020, which amounted to 20 million dirhams. The company’s revenue during the last quarter of 2021 amounted to about 1.3 billion dirhams, an increase of 143% compared to the same period a year earlier. Air Arabia served more than 2.5 million passengers during the last quarter of 2021 from its five operating centers, doubling the number registered in the same period last year. The seat occupancy rate increased by 6%, reflecting the increase in demand for air travel over the last quarter, as it averaged 81%. These results crown the recording of the company’s net profits for the fifth consecutive quarter since the beginning of the pandemic.
Al-Thani added: “The company achieved a strong performance during the last quarter of 2021, which was supported by high demand for our services and value-added offers, high revenue margin, except that the management team continues to Strictly implement cost control measures We will continue to provide the best value-added services to our customers Focusing on operational efficiency and cost control.
In 2021, Air Arabia acquired a new Airbus A321 neo-LR aircraft, joining its fleet of 58 aircraft, and the company added 44 new destinations from its five headquarters in the United Arab Emirates, Morocco and Egypt.
Despite the aftermath of the pandemic, Air Arabia continued to grow from its hubs of operations as Saudi Arabia added 7 new destinations in 2021 from its headquarters at Abu Dhabi International Airport.
While “Al Arabiya Marocco” added 16 new destinations, and “Al Arabiya Egypt” 15 new destinations. During 2021, the company signed a partnership agreement with the Armenian National Interest Fund to launch FlyArna, the new Armenian airline.
Air Arabia also signed an agreement with Laxon Group, one of the leading business groups in Pakistan, to launch a new low-cost airline in Pakistan called “Flywing”. Air Arabia Group will manage both joint ventures according to its low cost economic business model, providing its customers with reliable operations and value-added services.
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