Air Arabia profits climb 32%

The budget carrier Air Arabia, based in Sharjah, posted a net profit in the first quarter of Dh103 million (US$28.1m), a 32 per cent rise on the first quarter of last year, after gaining from lower fuel prices and passengers switching to low-cost travel.

The results contrast sharply with the global airline industry that is expected to lose $4.7 billion this year due to sharply falling demand.

The growth in net profits exceeded the pace of both new revenues and passengers, the airline said Saturday. Revenues were up 21 per cent compared with the first quarter last year to Dh463m, while passenger traffic rose 26 per cent to about 951,000 customers.