Air Arabia’s bottom line falls 15% in 2Q 2024 while revenues rise 19%

Emirati budget carrier Air Arabia saw its bottom line after tax fall 15% y-o-y to AED 390.2 mn in 2Q 2024, according to its financial statements (pdf). Air Arabia attributed the fall to slower yield growth and rising costs in the aviation industry, driven by economic and geopolitical uncertainties, currency fluctuations, fuel price volatility, and supply chain disruptions in 2Q, it said in a separate earnings release (pdf). The airline’s top line rose 19% y-o-y during the period to AED 1.66 bn.

On a six-month basis, Air Arabia’s net income fell 21% y-o-y to AED 631.3 mn in 1H 2024. The company’s revenues rose 13% y-o-y to 3.2 bn, driven by strong passenger demand, with over 8.9 mn passengers traveling with Air Arabia in 1H, marking a 16% y-o-y increase.