Air Arabia has reported a record profit of AED 1.2 billion ($327 million) in its annual financial results from 2022. This was nearly double its profit in 2021, which was AED 720 million ($196 million). The company recorded a turnover of AED 5.2 billion ($1.2 billion) in 2022, an increase on the AED 3.2 billion ($871 million) reported in 2021.
Because of the positive financial report from 2022, the company’s Board of Directions proposed a cash dividend distribution of 15 fils per share, equivalent to a 15% share of capital. The proposed dividend distribution is awaiting confirmation from Air Arabia’s shareholders, which will be decided at the company’s Annual General Meeting.
Recent growth supported by a historic level of passengers
The airline reported year-over-year growth and served more than 12.8 million passengers in 2022. This is a 90% increase from the 6.8 million passengers carried in 2021, and led to an average load factor of 80%. Air Arabia was able to reach and exceed pre-pandemic levels of transport in 2022.
Sheikh Abdullah Bin Mohammad Al Thani, the Chairman of Air Arabia, said:
"Although the year 2022 continued to be challenging, the aviation industry has begun returning to normality as airlines and airports worldwide witnessed faster recovery following the drop in demand caused by the pandemic."
Fourth-quarter results support a year full of growth
Air Arabia registered a net profit of AED 356 million ($97 million) in the fourth quarter of 2022, a slight decrease compared to the net profit of AED 467 million ($127 million) reported in the fourth quarter of 2021. Despite this, the airline still reported more than 3.6 million passengers in the fourth quarter of 2023, a 44% increase compared to the 2.5 million passengers carried in the same quarter of 2022. This shows the willingness of passengers to continue flying Air Arabia and supports a positive outlook in 2023.
Al Thani spoke about the fourth quarter, saying:
"The solid fourth quarter and full-year results were supported by the carrier’s cost control measures, strong yield margins, and higher demand for its value-driven product. We remain committed to providing our customers with the best travel deals while continuously investing in growth and product innovation."
Air Arabia continued to look for growth in 2022
The company encouraged growth throughout 2022 by adding 24 new routes to its network. These routes depart from their hubs in the UAE, Morocco, Egypt, Pakistan, and Armenia, and include destinations across Europe, the Middle East, Asia, and Africa.
Along with adding new destinations, Air Arabia also took delivery of ten new aircraft. This brings its fleet number to nearly 70 Airbus A320s and A321s.
Al Thani commented on the recent growth, saying:
"Air Arabia Group maintained its robust growth in 2022 by increasing its fleet size and adding new routes across its global network while launching the operations of its latest joint venture airlines in Armenia and Pakistan. We are proud that Air Arabia’s value-driven product and services now reach a wider and fast-growing customer base spread across key regional markets."
In addition to expanding its fleet, Air Arabia was also named the “Airline of the Year” at the Air Transport Awards and named the “Most Punctual Airline” by Moscow Domodedovo Airport in 2022. These awards show a continuous effort to maintain growth, even after celebrating 19 years of operation in October 2022.