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UAE-based low-budget carrier Air Arabia’s net profit jumped 69% in 2022 as revenues rose to an “all-time high” on the back of a post-pandemic rebound in the travel industry.
The airline’s full-year 2022 net profit attributable to owners of the company reached AED 1.22 billion ($332 million), up from AED 719.9 million in the previous year, according to a disclosure on the Dubai Financial Market (DFM) on Wednesday. Total revenue for the year crossed AED 5.2 billion, an increase of 64% from the previous year’s AED 3.17 billion.
Air Arabia said the travel industry has rebounded after the “drastic collapse” during the peak of the COVID-19 pandemic, but it warned that “many geo-political and economic challenges” continue to pose challenges.
In an accompanying report, the carrier’s board of directors noted that passenger numbers have already “crossed expectations”. With the resumption in travel demand, Air Arabia has not only restored its fleet, but it also added 10 new aircraft to boost its capacity in 2022.
“During 2022, the airline industry has begun returning to normality and we have witnessed airlines and airports around the world recovering from the drastic collapse in demand caused by the COVID-19 pandemic,” the board said.
“Passenger numbers have crossed expectations set in the recovery phase of the pandemic and in some cases surpassed the pre-pandemic numbers.”
Despite the strong results achieved last year, Air Arabia said the aviation industry continues to face challenges, which include geo-political conflict and supply chain disruptions.
“There is a noticeable scarcity in technical labour across the sector, shortage in spare parts, long wait time for specialised maintenance, and even the unavailability of aircraft,” the board said.
(Reporting by Cleofe Maceda; editing by Brinda Darasha)
