Air Arabia reports 51% fall in profit



Net profit at Air Arabia fell by 51 per cent in the first quarter due to lower ticket prices and higher fuel costs, the carrier said. The Sharjah-based airline made a profit of Dh50 million (US$13.62m), compared with Dh103m in the first quarter last year before the arrival of flydubai, which has quickly expanded its service to 18 low-cost flights from Dubai International Airport.

"We are glad with the positive results Air Arabia posted in the first quarter of this year," said Adel Ali, the group chief executive of Air Arabia, which includes a budget operation based in Morocco. It also plans to launch an airline based in Egypt. "The lingering impact of the global financial crisis and the rise in fuel cost continues to affect the profitability of airlines worldwide as a result of continuous dilution in yields versus market overcapacity," Mr Ali said.

"Nevertheless, Air Arabia posted appealing profits for this quarter and maintained its positive growth in passenger numbers." The airline served 1.03 million passengers in the first quarter compared with 951,000 passengers carried in the same period last year. Its aircraft occupancy levels averaged 80 per cent, in line with last year. Kareem Murad, a transport analyst at Shuaa Capital in Dubai, said the results were below Shuaa's expectations of a Dh66m profit.

The impact of new competition from flydubai was not significant, Mr Murad said, because Air Arabia was still many times larger than the upstart budget carrier from Dubai. Air Arabia operates 21 Airbus A320 aircraft and serves 60 destinations. "It is not competition from flydubai but the aviation business in general, with the industry seeing very tight yields," he said. The global airline industry as a whole is expected to lose several billion dollars this year, he said, "so a profitable result is definitely positive for them".

The carrier's newest venture, Air Arabia Egypt, was originally expected to be launched in late March from Alexandria. That venture will be undertaken with the Travco Group. A revised launch date has not been given. The new unit "could become very profitable to Air Arabia's bottom line", Mr Murad said. igale@thenational.ae

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Copa del Rey

Semi-final, first leg

Barcelona 1 (Malcom 57')
Real Madrid (Vazquez 6')

Second leg, February 27

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
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Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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Practitioners of mindful eating recommend the following books to get you started:

Savor: Mindful Eating, Mindful Life by Thich Nhat Hanh and Dr Lilian Cheung

How to Eat by Thich Nhat Hanh

The Mindful Diet by Dr Ruth Wolever

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Favourite travel destination: Switzerland

Hobbies: Travelling and following motivational speeches and speakers

Favourite place in UAE: Dubai Museum

SPECS

Nissan 370z Nismo

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RESULT

Arsenal 1 Chelsea 2
Arsenal:
Aubameyang (13')
Chelsea: Jorginho (83'), Abraham (87') 

The Disaster Artist

Director: James Franco

Starring: James Franco, Dave Franco, Seth Rogan

Four stars

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Stuart Kells, Counterpoint Press

Dr Amal Khalid Alias revealed a recent case of a woman with daughters, who specifically wanted a boy.

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While you're here
WHAT IS A BLACK HOLE?

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4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

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Brescia 1 (Skrinia og, 76)

Inter Milan 2 (Martinez 33, Lukaku 63)

 

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At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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