Air Arabia revenue drops at third-quarter

In a statement the company blamed the revenue drop on reduced travel during Ramadan. It reported net income of Dh143.5 million (US$39m) for the three months ending September 30 compared with Dh214.4m in the same period of last year. Revenue fell 12 per cent to Dh547.5m.

Air Arabia said passenger traffic in the third quarter was hurt by a seasonal contraction in travel during Ramadan, and concerns related to the swine flu virus as well as continuing fallout from the global financial downturn. The largest low-cost carrier in the MENA region says the results continue to demonstrate the long-term sustainability of its business model and the appeal of its low-cost services.

“At a time when the worldwide airline industry is projected to witness collective annual losses approaching $11bn, we are pleased to announce results for the first nine months of this year that continue to exceed expectations, demonstrating our positive performance amidst extremely challenging conditions,” said Adel Ali, the group chief executive of Air Arabia at the Dubai Air Show

“While the challenges that lie ahead, especially in the short term, remain significant, we are convinced that Air Arabia will continue to serve as the preferred value-for-money choice for passengers seeking to travel in the Middle East North Africa, Europe and Asia.”

The airline reported a nine-month net profit of Dh336.6m, down 10 per cent from a year earlier, as revenue slipped 2 per cent to Dh1.47 billion. But it served 14 per cent more passengers during the period than in the first nine months of last year, and filled an average 79 per cent of its available seats.