Air Arabia announces record third quarter net profit of AED 214 million, up 30 per cent

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Air Arabia, the first and largest low-cost carrier (LCC) in the Middle East and North Africa, today released its financial results for the third quarter of 2008. The company’s net profit for the three months ending September 30, 2008, stood at AED 214 million, an increase of 30 per cent compared to AED 165 million during the third quarter of 2007.

For the third quarter of 2008, the company posted a turnover of AED 625 million, up 69 per cent compared to AED 369 million during the third quarter of last year. During the third quarter of 2008, the airline served 978,794 passengers, an increase of 34 per cent compared to 729,745 passengers during the same period in 2007. For the third quarter, Air Arabia’s average seat load factor – or passengers carried as a percentage of available seats – remained at an extremely impressive 87 per cent.

Adel Ali, Board Member and Chief Executive Officer of Air Arabia, said, “Air Arabia is extremely proud to announce such positive results, which demonstrate our ability to deliver sustained growth and excellent returns to our investors. These results are also a clear indication that our passengers have confidence in our efforts and continue to benefit from our industry-leading low fares.”

“This quarter has been busy and special with its conclusion came the start of our five-year anniversary celebratory month. As we look ahead toward the next five years, we intend to continue in the same vein – to grow our fleet of aircraft, expand our network of destinations and continue to offer the very best value-for-money service throughout the regions we serve and beyond” Ali added.

The positive financial results for Air Arabia in the third quarter of 2008 reflect a continued upward trend for the carrier. For the first nine months of 2008, the company posted a net profit of AED 374 million, up 34 per cent compared to AED 280 million during the same period last year. For the same period, the company posted a turnover of AED 1,495 million, up 68 per cent compared to AED 889 million in the first nine months of 2007. In the first nine months of 2008, the airline served a total of 2,601,967 passengers, an increase of 33 per cent compared to 1,954,982 passengers during the first nine months in 2007.

Both the carrier’s growth and its special consideration to passenger satisfaction have been recognised by numerous prestigious awards. In the last quarter Air Arabia secured the “Best Low-Cost Airline Award – Middle East and Africa” at the World Low-Cost Airline Awards held in London and at the same event Adel Ali was named the world’s low-cost carrier “CEO of the Year.”

October 28, 2008, marked Air Arabia’s five-year anniversary. The airline celebrated this milestone by covering the cost of all Air Arabia passengers’ flights for this day – a total of 12,500 free seats were made available.