UAE's Air Arabia Q2 profit rises 2 %

UAE budget carrier Air Arabia performed well during the second quarter despite challenging period and soaring tickets price regime. The firm reported 2 per cent increase in its Q2 net profit beating the projections of analysts.

The carrier earned a net profit of $13.9 million as compared to 50 million dirhams during the corresponding period last year. Air Arabia’s Q2 revenue rose 22 percent to 592 million dirhams from 485 million dirhams.

Sheikh Abdullah Bin Mohammad Al Thani, the airline’s chairman, said that passenger traffic rose 5 per cent during the year. Carriers across the region hiked ticket prices in the wake of trouble erupted many parts of the Gulf region. The low cost carrier decided to roll back its plans to establish a fourth hub in Jordan due to regional unrest and soaring fuel prices.

Al Thani said, “We remain confident about the outlook of low cost travel in the region amidst market ambiguity, continuous challenging conditions and (a) rise trend in fuel costs.”

Meanwhile, shares of the firm declined 0.59 per cent on the Dubai Index.