Air Arabia Q3 net more than doubles to $61m
Dubai, November 12, 2012
UAE budget carrier Air Arabia's third-quarter net profit more than doubled Dh225.8 million ($61.5 million), up from Dh99.3 million a year ago, as the airline carried more passengers and benefited from easing fuel costs.
Two analysts had forecast profit of Dh170 million and Dh150.2 million in a Reuters poll.
Revenue for the quarter rose to Dh836.2 million from Dh701.8 million in the prior-year period.
Other incomes, which includes gains from fuel hedging, shot up to Dh61.4 million from a Dh35.8 million loss in the corresponding period of 2011.
Passenger traffic in the quarter increased 14 percent to 1.4 million people, the company said. The average seat load factor - or passengers carried as a percentage of available seats - for the quarter was 82 percent.
Sharjah-based Air Arabia is the only low budget carrier operating out of the United Arab Emirates, home to Dubai government-owned Emirates and Abu Dhabi's Etihad Airways.
Emirates also reported a profit jump earlier on Monday.
"With market conditions rebounding, there remain great opportunities for the low cost travel segment in the region," said Sheikh Abdullah Bin Mohammad Al Thani, Air Arabia's chairman.
The carrier also has hubs in Egypt and Morocco. It competes with other regional low cost carriers such as flydubai and Kuwait's Jazeera Airways.
Shares of the company ended 1.2 percent higher before the announcement. – Reuters