By IANS/WAM,
Sharjah: Air Arabia Sunday announced a net profit of 50 million dirhams (about $30 million) for the second quarter of 2010 ended June 30.
This is a 44 percent decline compared to 90 million dirhams in the corresponding period last year.
This decline was in line with global industry performance, which continues to be impacted by changing market dynamics, characterized by increase in fuel costs and pressure on yield margins, the airline said.
Air Arabia posted a turnover of 485 million dirhams in the second quarter, an increase of six percent compared to 458 million dirhams in the same period last year.
It is the first and largest low-cost carrier (LCC) in the Middle East and North Africa.
The airline served 1,108,310 passengers in the second quarter of 2010, an increase of 11 percent compared to 1,002,394 passengers in the same period last year.
Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia said: “These results demonstrate the strength of Air Arabia’s business model and long-term expansion strategy. The airline has embarked upon a phase of organic growth, now operating from three hubs across the region.”
Air Arabia currently offers service to 65 routes across Europe, the Middle East, Africa and Asia from three hubs in UAE, Morocco and Egypt. The low-cost carrier also announced the formation of Jordan’s first low-cost carrier in a joint venture with the Tantash Group.