Dubai: Air Arabia announced on Monday a net profit of Dh435 million for the 2013 financial year, a 2 per cent increase compared to the same period in 2012.
The Sharjah-based budget carrier said the slight increase in profit was due to its network expansion strategy, having launched eight new destinations in 2013.
Turnover for the full year ending December 31, 2013, was Dh3.2 billion, up 14 per cent on the same period in 2013.
However, in the last quarter of the year, Air Arabia reported a Dh94 million net profit for the 2013 fourth quarter, up 12 per cent compared to the Dh84 million reported in the same 2012 period. The airline's turnover for the 2013 fourth quarter was Dh811 million, an 8 per cent increase compared to Dh753 million reported in 2012.
"Air Arabia has enjoyed consistent and sustained growth since launching operations back in October 2003, and our performance in the year of our tenth anniversary was no exception," stated Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia.
Air Arabia continues to fly more passengers each year and 6.1 million passengers travelled with the airline in 2013, a 15 per cent increase compared to the 5.3 million passengers carried in 2013. It also maintained an 80 per cent seat load factor throughout 2013.
Seat load factor measures the number of passengers carried against available seats.
"It would be good to start seeing growth in ancillary revenue, but then again a Â€˜LCC' in the Middle East has a different flavour, and outcomes, than those elsewhere in the world," Will Horton, senior analyst at CAPA - Centre for Aviation, said in an email.
Air Arabia also has hub operations out of Alexandria, Egypt, and in Morocco. It recently announced that it will become the designated carrier for Ras Al Khaimah, whilst still maintaining its main hub in Sharjah.
"Given Air Arabia's success, I wouldn't suggest they're about to venture into RAK without clear expectations or generous incentives," Horton stated.
Air Arabia's board of directors has proposed a dividend distribution of 7.25 fils per share, which is subject to ratification by Air Arabia's shareholders.
Air Arabia's shared closed up 1.83 per cent on Monday at Dh1.67.