Air Arabia Q1 profit nosedives 45pc
Sharjah-based budget carrier Air Arabia’s first-quarter 2020 net profit nosedived 45 per cent to Dh71 million as compared to Dh128 million for the same period last year due to Covid-19 impact on the its financial and operational performance, Khaleej Times reported.
The airline posted a turnover of Dh901 million, a 12 per cent less than the corresponding first quarter of last year. More than 2.4 million passengers flew with Air Arabia between January and March 2020 across the carrier’s four hubs, a 14 per cent lower than the number of passengers carried in the first quarter of last year.
The airline’s average seat load factor - or passengers carried as a percentage of available seats - during the first three months of 2020 maintained its high average and stood at 83 per cent.
Air Arabia managed to register a profitable first quarter despite performance being impacted by Covid-19 pandemic that hit the global air travel in mid-February and continues to impact the aviation industry.
Sheikh Abdullah bin Mohamed Al Thani, Chairman of Air Arabia, said Air Arabia witnessed a strong start of the year across the breadth of its operations. However, the impact of Covid-19 pandemic on the global aviation, which materialised in airport closures, travel restrictions and low travel demand, has affected the overall performance of the quarter.
“Nonetheless, we are glad that Air Arabia still managed to deliver profitability and solid performance during the first quarter of this year. Since the start of the Covid-19 pandemic, we have reacted quickly and took all possible measures to protect our passengers and crew while ensuring we continue to fly safely where we can,” he said.
“Additionally, he said the management team has taken a series of business decisions to control our fixed and running costs during this period while supporting our business continuity. All these measures are set in motion at a time when airlines around the world continue to battle the biggest challenge faced in the history of aviation”.