Air Arabia's Record-Breaking Year and Expansion
Air Arabia concluded 2024 with record revenues and expansion. The airline, the first and largest low-cost carrier in the Middle East and North Africa, achieved impressive results by not only hitting record profits but also boasting significant network expansion and business growth. According to company leaders, this year was pivotal in every aspect and further strengthened the airline's position in the region.
Record Profit and Traffic Growth
In 2024, Air Arabia achieved a net profit of 1.6 billion dirhams (Dh), marking a 4% increase compared to the 1.5 billion dirhams in 2023. Annual revenue reached approximately 6.63 billion dirhams, an 11% rise from the previous year's 6 billion dirhams. These figures not only affirm the airline's financial stability but also demonstrate that the low-cost aviation model remains a robust and sought-after service in the region.
Several strategic initiatives underpinned this growth. Operating from six different bases in 2024, Air Arabia launched 31 new routes, resulting in a 13% capacity increase and a 12% rise in passenger numbers. The group transported a total of 18.8 million passengers throughout the year, while the average seat load factor also grew by 2%, reaching 82%. This figure is particularly significant, showing that demand for Air Arabia's services remains high.
Dividend Proposal and Shareholder Approval
The board of directors of Air Arabia proposed a 25% dividend payment to shareholders, equivalent to 25 fils per share. This proposal was discussed at a recent board meeting and awaits approval from shareholders at the upcoming Annual General Meeting (AGM). The dividend offering further demonstrates the company's focus not only on growth but also on creating value for shareholders.
Strategic Expansion and New Routes
Air Arabia's 2024 was remarkable not only financially but also operationally. Operating from six bases, the airline executed a significant network expansion, launching 31 new routes. This strategic move enabled the company to achieve 13% capacity growth while passenger numbers also grew by 12%. In the fourth quarter, the company performed especially strongly: quarterly net profit was 351 million dirhams, a 56% increase compared to the same period in 2023. Quarterly revenue amounted to around 1.65 billion dirhams, supported by transporting 4.7 million passengers and achieving an 83% seat load factor.
Leaders' Opinions
The chairman of Air Arabia highlighted that 2024 was a record year for the group. 'This year ended with outstanding results made possible by strategic expansion, the launch of new routes, and a strong market presence. Despite geopolitical tensions and economic challenges affecting the region, the Air Arabia group was able to maintain a strong growth trajectory.'
He also expressed satisfaction with the fourth quarter's results: 'The last quarter of the year was exceptional for us. We successfully expanded our network while maintaining solid profit margins. Strategic growth, strict cost control, and strong operational efficiency all contributed to the excellent quarterly performance.'
What to Expect in 2025?
Looking ahead, Air Arabia plans to continue focusing on expansion and enhancing operational efficiency. The airline aims to open more new routes and increase capacity while also introducing sustainability and innovation initiatives. Based on the 2024 results, Air Arabia not only remains the low-cost aviation leader in the region but is also increasingly becoming a global player.
Overall, Air Arabia's 2024 was successful from every perspective. Record profits, significant traffic growth, and strategic expansion all demonstrate that the airline is well-positioned for future challenges and opportunities. For shareholders, the dividend offering is a positive signal, which further reinforces the company's reliability and long-term stability.
