Air Arabia provides air transportation services for passengers through 11 aircrafts and to 37 destinations, as of December 2007. Operating out of Sharjah International AiportSharjah International Aiport, the airline was established in February 2003 as the first low carrier in the Middle East.

In 2007, Air Arabia carried 2.7 million passengers, a 50% yearly increase. The airline increased its fleet size to 13 A320 aircrafts, 11 leased and two owned, by March 2008.

Through a joint venture agreement with Yeti Airlines of Nepal, Air Arabia formed Yeti International Airlines, a low-cost carrier, which allows it to serve South and Central Asia, the Far East, the Middle East and the Indian Subcontinent. Yeti International Airlines, which began operations in January 2008, hopes to reach 20 destinations, own six aircrafts and carry up to 1.4 million passengers by 2010.

Air Arabia underwent an IPO on March18, 2007 with 55% of its shares on offer, worth AED2.618 billion (USD712.76 million). In July 2007, the Airline listed its shares on the Dubai Financial Market, and became the third publicly listed airline in the MENA region, after Karthago AirlinesKarthago Airlines and TunisairTunisair.

Air Arabia plans for its Sharjah hub to reach up to 50 destinations, own 19 aircrafts and carry up to 4.5 million passengers by 2010. Air Arabia also plans to seek out a third hub before the end 2008.