Air Arabia soars high on record passenger growth, but Q2 profit disappoints

14/08/2025 04:46 AST

UAE low-cost carrier Air Arabia reported a net profit of Dh415 million for the second quarter of 2025, supported by strong passenger demand and network expansion.

The April-June earnings figure mark a 3% dip from the Dh427 million recorded in Q2 2024, but revenue rose 2% year-on-year to Dh1.69 billion. Passenger traffic climbed 15% to 5.1 million, with the average seat load factor improving six percentage points to 85%.

H1 2025 growth momentum
In the first half of the year, Air Arabia posted a net profit of Dh770 million, up 11% from the Dh693 million in the same period last year. Turnover grew 8% to Dh3.44 billion, while passenger numbers reached 10.1 million, a 13% increase. The average seat load factor for the first six months stood at 84%.

Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, said the results reflected the carrier's resilience and effective growth strategy despite "escalating geopolitical tensions and regional conflict" that caused operational disruptions.

"We continued to invest in expanding operational capacity across all hubs, achieving a record seat load factor driven by strong and sustained demand for air travel," Al Thani noted.

Fleet and route expansion
Air Arabia added two aircraft to its fleet in H1 2025, bringing the total to 83 Airbus A320 and A321 jets, with deliveries from an order of 120 new aircraft expected to begin by year-end. The airline also launched 13 new routes across its hubs in the UAE, Morocco, Egypt, and Pakistan.

The company maintained its 'Leader' category status in the MSCI ESG Ratings with an "AA" score and was listed among Forbes Middle East's "Top 100 Listed Companies" for the second year running.

Looking ahead, Al Thani said the airline will focus on expanding connectivity, entering new markets, and improving operational efficiency, while maintaining shareholder value and sustainable growth.

Gulfnews