Air Arabia (PJSC), the Middle East and North Africa's first and largest low-cost carrier, reported a solid net profit of AED425 million, beating analysts forecast and registering an increase of 55 percent compared to AED274 million reported for the same period in 2011, demonstrating steady growth and solid financial performance. The airline's turnover for the full year 2012 stood at AED2.9 billion, an increase of 21 per cent as compared to AED2.4 billion registered in 2011. Air Arabia carried over 5.3 million passengers in 2012, registering a 13 percent increase compared to 4.7 million passengers in 2011. The carrier's seat load factor – or passengers carried as a percentage of available seats – stood at impressive 82 percent for the full year ending Dec. 31, 2012. The results were announced Monday following a meeting of the Board of Directors of Air Arabia, who had proposed a dividend distribution of 7 percent of capital, which is equivalent to 7 fils per share. This proposal is subject to ratification by the shareholders of Air Arabia at the company's upcoming Annual General Meeting. Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, attributed the strong financial results to airline's rapid expansion plans in 2012 and the efficiency of its operations. He said: “As these results signify, Air Arabia continued to demonstrate its concerted efforts to enter into new markets and launch new ventures, while enabling more people to fly efficiently and affordably. The year 2012 saw Air Arabia expand its global network by entering new markets, taking more aircraft deliveries as well as offering its customers wider product offerings and services.” On the back of strong passenger numbers, the airline's fourth quarter net profit stood at AED83 million, increase of 6 per cent compared to AED78 million in 2011. The fourth quarter turnover reached AED755 million, representing an increase of 18 percent compared to AED638 million reported for the same period in 2011. Sheikh Al Thani added: “With market conditions rebounding, the airline is fully confident in its ability to unlock opportunities for the low-cost model, which is pioneered by Air Arabia. As we continue to focus on expansion plans, we remain committed to making air travel accessible to millions of customers in the wider Arab region.” Air Arabia, which now operates flights to 82 destinations from three regional hubs; introduced nine new destination in 2012 from its primary hub in Sharjah - Kazan, Taif, Salalah, Ufa, Odessa, Erbil, Astana, Basra and Rostov. – SG
