Air Arabia (PJSC), the region’s first and largest low-cost carrier (LCC) operator in the Middle East and North Africa, today announced its full-year operational and financial results for the year ended 31 December 2024.
The carrier achieved a record pre-tax net profit of AED 1.6 billion, up by 4% from AED 1.5 billion in 2023. Total year turnover was more than AED 6.63 billion, up by 11% from AED 6 billion in 2023.
Air Arabia in 2024 showed its expansion and cost-saving strategy with six new bases unveiled and the launch of 31 new routes. Such strategic expansion added 13% to operating capacity and 12% incremental total passengers carried to 18.8 million in the group. Air Arabia also illustrated 2% incremental average seat load factor to 82%, again reflecting the solid sustained demand for Air Arabia’s low-fare, value-for-money product.
Full Year 2024 Performance:
AED
FY 2024
FY 2023
%
Revenue
AED 6.63 billion
AED 6 billion
11%
Passenger Numbersall hubs
18.8 million
16.7 million
12%
Seat Load Factor
82%
80%
2%
Net Profit Before Tax
AED 1.6 billion
AED 1.54 billion
4%
Net Profit After Tax
AED 1.46 billion
Air Arabia Board of Directors has proposed a distribution of 25% on the share capital, i.e., 25 fils a share. This has been proposed in a recent board meeting and would be ratified by Air Arabia shareholders at the upcoming Annual General Meeting (AGM).
Sheikh Abdullah Bin Mohamed Al Thani, Chairman of Air Arabia, said: “2024 has been the Air Arabia Group’s finest year to date, with broad expansion and further penetration across all focus markets. Leaning on the momentum of our strong foundation, we have also witnessed compelling financial and operational development, justifying the merit of our business model, the strength of our management team, and the determination of our strategy.”
He further said: “Despite geopolitical tensions and economic pressure in the region, Air Arabia Group has managed to sustain its high growth rate during 2024. This was further complemented with additions in operating capacity, expansion on new routes, as well as further network expansion in all our hubs. We are highly proud to be in a position to present a value proposition for travel to a progressively wider customer base, further solidifying our position in world markets and sustaining operating excellence.”.
Fourth quarter December 31, 2024 saw Air Arabia registering a record net profit of AED 351 million, which is 56% higher compared to AED 225 million in the prior year period. Fourth quarter 2024 turnover rose 7% to AED 1.65 billion led by a rise of 11% in passengers with the airline carrying more than 4.7 million passengers on the network during the quarter. Meanwhile, the seat load factor was 2% higher at a healthy 83%, reflecting continued demand for services provided by Air Arabia.
Fourth Quarter 2024 Performance:
AED
Q4 2024
Q4 2023
%
Revenue
AED 1.65 billion
AED 1.54 billion
7%
Passenger Numbersall hubs
4.7 million
4.2 million
11%
Seat Load Factor
83%
81%
2%
Net Profit
AED 351 million
AED 225 million
56%
Al Thani added further: “”
“The fourth quarter of the year was exceptional for Air Arabia, as we expanded our network while maintaining healthy margins. This growth strategy complemented with tireless cost discipline and operating efficiency, led to a fantastic quarter’s performance”
Full Year 2024 Highlights:
Fleet
· Total operating fleet of Air Arabia increased to 81 Airbus A320 and A321 aircraft in all bases.
· Ten additional Airbus A320 aircraft were added to the fleet in 2024 to further increase operational capacity.
· Nine short-term leased Airbus A320 and A321 aircraft were added in 2024 to enable peak season operations throughout the group.
Network
· Air Arabia grew its international network with the launch of a total of 31 new routes throughout 2024 to bring its overall network to 220 routes throughout all operating hubs.
· Total capacity available in all-hub grew by 13% during 2024 relative to the previous year.
Liquidity
· AED 5.3 billion cash and cash equivalents.
ESG
· Air Arabia has chosen a full circular economy solution for all inflight service items that is biodegradable. Packaging of even food and beverages has turned 100% recyclable.
· The airline completed phase one of its fuel management system upgrade to continue to fine-tune fuel efficiency company-wide, further cutting emissions.
· Air Arabia has also implemented a “Paperless Approach” for the engineering department, wherein paper maintenance records were eliminated and substituted with an all-electronic method based on the world-class AMOS system.
· Air Arabia extended its ‘Charity Cloud’ corporate social responsibility program in 2024 by opening one more classroom in Cambodia and two more clinics in Tajikistan and Bangladesh. These along with the 15 clinics and schools already in operation in 12 countries.
· As of June 2024, Air Arabia received an “AA” ESG ranking from MSCI, placing it in the Leader category under MSCI’s classification.
Recognition
· Air Arabia was recognized among the Top 100 Listed Companies of 2024 by Forbes Middle East.
· Air Arabia ranked the eighth best regionally and globally by AirHelp.
· Second in the world in the Top 100 Airlines for 2024 by Airfinance Global ranking and ranked number one in the world with the lowest fuel cost per U.S. gallon.
· Air Arabia received the “Corporate Award in the Airline Category” at the 2024 Athens OPS Forum, Greece.
· Air Arabia and its CEO were included in the Top 100 Most Admired Companies & Inspiring Leaders of 2024 by Arabian Business Magazine.
· Air Arabia was awarded the highly sought-after “Leading Low-Cost Airline Brand – MENA” award by Global Brands Magazine.
· Fly Jinnah, which is a subsidiary of the Air Arabia Group, was among the Top 5 Best Low-Cost Airlines in Central Asia & CIS in 2024, according to Skytrax.
Outlook
Al Thani added: “As the global air transport sector is expanding in the face of such geopolitical tensions, inflation, and supply chain limitations, Air Arabia is ready to grow and expand. We aim to increase connectivity, increase our operating capacity, and provide maximum value and low-cost flying options to our customers. We believe in our business model, operating discipline, and customer fixation that enable us to expand our network and provide a seamless travel experience to ever more customers.”
