Middle East budget airline Air Arabia swung to a quarterly profit as revenue more than quadrupled and passenger traffic increased across its five bases amid a gradual recovery in air travel from the Covid-19 pandemic.
The airline posted a Dh10 million ($2.72m) net profit in the three months to June 30, compared with a Dh239m loss in the same period a year earlier, Air Arabia said on Monday. Quarterly revenue was up 313 per cent to Dh496m.
"While flights' resumption compared to pre-pandemic are still subject to many restrictions, the second quarter of 2021 witnessed gradual improvement in comparison to same quarter last year, which was heavily [affected] by the subsequent cancellation of scheduled flight operations," Sheikh Abdullah bin Mohamed Al Thani, chairman of Air Arabia, said.
This is the third consecutive profitable quarter that the company registered since the pandemic hit.
"We remain optimistic that the gradual ease on travel restrictions and resumption of operations will continue to help the industry in its path to recovery," Sheikh Abdullah said.
In the first half of the year, Air Arabia reported a net profit of Dh44m for the six months ending June 30, compared to a net loss of Dh169m in the same period in 2020.
In the first six months of 2021 the airline posted a turnover of Dh1 billion, a 5 per cent increase compared to the corresponding period last year, Air Arabia said.
“Air Arabia’s ability to post a profitable first half 2021, despite the continued [effects] of the Covid-19 pandemic on the aviation industry worldwide, is a direct result of the cost-control measures adopted by the management team and supported by the gradual resumption of operations witnessed in the first half," Sheikh Abdullah said.
More than 2.3 million passengers flew with Air Arabia between January and June this year across the airline’s five bases, down from 2.48 million passengers from four hubs in the first half of 2020.
Air Arabia’s average seat load factor – passengers carried as a percentage of available seats – during the first six months of 2021 stood at 73 per cent on average.
The Dubai Financial Market-listed airline expanded its route network in the first half of the year by launching new flights from its bases in the UAE and Egypt.
"Summer has seen good progress. July and August have been very promising," Adel Ali, Air Arabia group chief executive, told Bloomberg TV in an interview on Tuesday.
"Flights are full, wherever it has not been blocked or complicated by various airports around the world people want to get to."
Mr Ali said he is "now more optimistic" as people adapt to the Covid-19 pandemic and there is pent-up demand to travel more.
"I am feeling good at the moment about the future and let us hope we don't get more surprises," he said.
In July, Air Arabia Group signed an agreement with the Armenian National Interests Fund to launch Armenia’s new national airline. The Sharjah-based group will hold a 49 per cent stake in the joint venture airline and will manage the business, Mr Ali said.
The Armenian budget airline, which will begin operations in the summer of 2022, will lease aircraft to "close the gap" until Air Arabia receives its order of 120 Airbus narrow-body jets in 2024, he said.
Air Arabia has advertised for jobs at the Armenian venture – including for cabin crew, pilots and administrative positions – and has hired staff in other hubs after the pandemic-induced slowdown in air travel forced the airline to cut its workforce.
"We have brought in quite a lot of people already that we needed to gear up for the current business we have in the UAE, Morocco and Egypt," Mr Ali said.
Meanwhile, Air Arabia Abu Dhabi, a joint venture between Air Arabia and Etihad Airways, plans to expand its fleet to 20 Airbus aircraft over the next five years amid optimism about future growth once air travel restrictions are eased, Mr Ali told The National in an interview in June.
The airline, which currently operates three Airbus A320s in the UAE capital, also expects annual passenger traffic to initially grow by 20 per cent to 25 per cent over the same period, he said at the time.
Rock in a Hard Place: Music and Mayhem in the Middle East
Orlando Crowcroft
Zed Books
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
MATCH INFO
Syria v Australia
2018 World Cup qualifying: Asia fourth round play-off first leg
Venue: Hang Jebat Stadium (Malacca, Malayisa)
Kick-off: Thursday, 4.30pm (UAE)
Watch: beIN Sports HD
* Second leg in Australia scheduled for October 10
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
The specs: 2018 Volkswagen Teramont
Price, base / as tested Dh137,000 / Dh189,950
Engine 3.6-litre V6
Gearbox Eight-speed automatic
Power 280hp @ 6,200rpm
Torque 360Nm @ 2,750rpm
Fuel economy, combined 11.7L / 100km
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The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
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Draw
Quarter-finals
Real Madrid (ESP) or Manchester City (ENG) v Juventus (ITA) or Lyon (FRA)
RB Leipzig (GER) v Atletico Madrid (ESP)
Barcelona (ESP) or Napoli (ITA) v Bayern Munich (GER) or Chelsea (ENG)
Atalanta (ITA) v Paris Saint-Germain (FRA)
Ties to be played August 12-15 in Lisbon
UAE currency: the story behind the money in your pockets
The specs: 2018 Infiniti QX80
Price: base / as tested: Dh335,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 400hp @ 5,800rpm
Torque: 560Nm @ 4,000rpm
Fuel economy, combined: 12.1L / 100km
'How To Build A Boat'
Jonathan Gornall, Simon & Schuster
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
MATCH INFO
Uefa Champions League, last 16, first leg
Tottenham Hotspur v Borussia Dortmund, midnight (Thursday), BeIN Sports
If you go
The flights
Etihad (etihad.com) flies from Abu Dhabi to Luang Prabang via Bangkok, with a return flight from Chiang Rai via Bangkok for about Dh3,000, including taxes. Emirates and Thai Airways cover the same route, also via Bangkok in both directions, from about Dh2,700.
The cruise
The Gypsy by Mekong Kingdoms has two cruising options: a three-night, four-day trip upstream cruise or a two-night, three-day downstream journey, from US$5,940 (Dh21,814), including meals, selected drinks, excursions and transfers.
The hotels
Accommodation is available in Luang Prabang at the Avani, from $290 (Dh1,065) per night, and at Anantara Golden Triangle Elephant Camp and Resort from $1,080 (Dh3,967) per night, including meals, an activity and transfers.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Country-size land deals
US interest in purchasing territory is not as outlandish as it sounds. Here's a look at some big land transactions between nations:
Louisiana Purchase
If Donald Trump is one who aims to broker "a deal of the century", then this was the "deal of the 19th Century". In 1803, the US nearly doubled in size when it bought 2,140,000 square kilometres from France for $15 million.
Florida Purchase Treaty
The US courted Spain for Florida for years. Spain eventually realised its burden in holding on to the territory and in 1819 effectively ceded it to America in a wider border treaty.
Alaska purchase
America's spending spree continued in 1867 when it acquired 1,518,800 km2 of Alaskan land from Russia for $7.2m. Critics panned the government for buying "useless land".
The Philippines
At the end of the Spanish-American War, a provision in the 1898 Treaty of Paris saw Spain surrender the Philippines for a payment of $20 million.
US Virgin Islands
It's not like a US president has never reached a deal with Denmark before. In 1917 the US purchased the Danish West Indies for $25m and renamed them the US Virgin Islands.
Gwadar
The most recent sovereign land purchase was in 1958 when Pakistan bought the southwestern port of Gwadar from Oman for 5.5bn Pakistan rupees.
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
