Air Arabia Reports Net Profit of AED 509 Million for 2016

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Sharjah: Air Arabia has posted a net profit of AED 509 million ($138.5 million) for the year 2016, 4 per cent lower than the 2015 figure of AED 531 million ($144.5 million).

Turnover for the full year 2016 was in line with the preceding 12 months reaching AED 3.8 billion ($1.03 billion).

More than 8.4 million passengers flew with Air Arabia in 2016, a 12 per cent year-on-year increase.

The average seat load factor – or passengers carried as a percentage of available seats – in 2016 stood at an impressive 79 per cent.

Following its solid full year 2016 performance, Air Arabia’s Board of Directors proposed a dividend distribution of 7 per cent of share capital.

This proposal was made following a meeting of the board of directors of Air Arabia and is subject to ratification by Air Arabia’s shareholders at the company’s upcoming Annual General Meeting.

Air Arabia added nine new routes to its global network in 2016 from its five operating hubs in the UAE, Morocco, Egypt and Jordan.

The carrier took delivery of seven new aircraft and ended the year with a fleet of 46 Airbus A320 aircraft operating to 124 routes across the Middle East, Africa, Asia and Europe.

Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia said: “2016 was a challenging year for the global aviation market as the economic and political uncertainty continued to impact the industry. We have seen vigilant fiscal markets, weakening currencies and political instability impacting airlines performance. Despite all challenges, Air Arabia recorded solid full year results driven by growth, efficient operations and tight cost controls.”