The UAE’s Air Arabia, the largest low-cost carrier (LCC) in the region, has recorded a net profit of Dh1.5 billion ($408 million) in 2023, a 27% increase from the Dh1.2 billion ($327 million) it obtained the year prior, according to a filing with the Dubai Financial Market, where its stocks are traded,
The low-cost carrier said turnover reached Dh6 billion, reflecting a 14% increase year-on-year (YoY).
In light of the results, Air Arabia’s board of directors proposed a dividend distribution of 20% of share capital, equivalent to 20 fils per share.
In 2023, Air Arabia also witnessed a significant 31% upsurge in passenger traffic, reaching 16.7 million. The growth was mainly attributed to increased operating capacity and the addition of new routes across its global network from all operational hubs.
In 2023, the airline expanded its operations across its seven hubs and introduced 26 new routes, bringing the total network size to 206 routes.
“The significant milestones attained in terms of growth, revenue, and profitability serve as a testament to Air Arabia’s robust business model, competent management team, and effective growth strategy,” said Air Arabia’s Chairman, HH Sheikh Abdullah Bin Mohamed Al Thani.
Despite the positive annual results, Air Arabia reported a 37% decrease in net profit in the fourth quarter of 2023 to Dh225 million. During the same period, the company reported Dh1.54 billion in revenue, an 11% increase from the previous year’s Dh1.4 billion.