The Emirati low-cost carrier Air Arabia, headquartered at Sharjah International Airport, When compared to the same quarter last year, Air Arabia’s $436 million (AED 1.6 billion) in revenue is a 100% increase, which is a sign of regaining confidence.
Achieved earnings of $113 million (AED416 million) in the third quarter of 2002 as a result of outstanding performance amid recovering demand and network development.
The largest low-cost carrier in the Middle East recorded earnings that were 99% higher than the $57 million (AED 209 million) reported in Q3 of the previous year.
Surge In The Number Of Passengers For Air Arabia
According to reports and data, more than 3.9 million passengers traveled on flights operated by Air Arabia Group between July and September 2022, using the airline’s six hubs in the UAE, Morocco, Egypt, and Armenia. This represents a rise of 103% over the same period in the previous year.
The average seat load factor, or the percentage of available seats filled by passengers, was 80%.
“Air Arabia’s solid performance in the third quarter of this year demonstrates the company’s strong operational and commercial strategy, as well as its underlying commitment to constantly providing meaningful value to customers,” said Sheikh Abdullah Bin Mohamed Al Thani, chairman of Air Arabia.
He stated that the management team was pleased to see another record result, supported by high passenger demand and strict cost control measures.
Throughout the first nine months of this year, Air Arabia continues to see strong growth thanks to the addition of new routes and flights across the company’s extensive worldwide network as well as the start-up of its joint venture airline in Armenia, he went on to add.
He concluded by remarking that Air Arabia will continue to concentrate on developing and diversifying its operations while investing in new product development and taking additional cost-controlling measures.
Recovery Phase For The Middle East Airlines
Even though the Middle East’s aviation sector has not yet entirely recovered from the Covid-19 pandemic’s downturn, it is getting there. According to industry analysts and experts OAG, Dubai International Airport is currently running at 86% of 2019 capacity levels.
Other major hubs Doha and Abu Dhabi are not far behind at 85% and 77%, respectively. More destinations are now served by all three hubs than there were before the pandemic started.
Low-cost carriers are mostly responsible for the growth. Airlines, which include Flydubai, Air Arabia Abu Dhabi, and Wizz Air Abu Dhabi, according to OAG, now account for 25% of business in Dubai and Abu Dhabi.
While the legacy carriers developed these hubs, mostly as a result of long-haul international connection, they have opened the door for [low-cost carriers] to now take advantage of a more established regional market, according to the OAG report published toward the end of October.
Other airlines operating in the region are also reporting impressive first-half profits. Turkish Airlines announced third-quarter revenue of $6.1 billion last week, which is a 52% increase over the same period in 2019, before the epidemic.
Ahmet Bolat, the chairman of Turkish Airlines, revealed in a recent conversation that the firm intends to separate its short-haul subsidiary AnadoluJet due to the uptick in demand.
Speaking at the International Air Transport Association conference in Istanbul, he remarked that it is much simpler to spin out AnadoluJet as a separate entity to support its growth given the present market-demand dynamics.
In a related development, Jazeera Airways of Kuwait said that it has exceeded 1 million passengers per quarter for the first time in its history. The company reported third-quarter earnings of KD 13.4 million ($204 million) and KD 63.2 million ($204 million), which were both record highs.