The Middle East low-cost carrier Air Arabia posted a double-digit growth in net earnings for the full year 2023 despite a dip in income during the last three months.

Net profit for the full year ending December 31, 2023 reached a record 1.5 billion dirhams ($408.4 million), representing a 27% growth over the AED 1.2 billion recorded a year earlier, the airline said in a statement on Tuesday.

However, during the last quarter of the year, total net profit stood at AED 225 million, down by 37% from the same period in 2022.

Total turnover for the last quarter went up by 11% to AED 1.54 billion, with the seat factor at 81%, while passenger numbers were up 17% to 4.2 million.

“Despite the softening in yield margins during the last quarter of the year and the ongoing challenges in the industry’s supply chain, Air Arabia demonstrated resilience by registering a solid profitability while maintaining impressive seat load factor and growth in revenue and passenger numbers,” Sheikh Abdullah Bin Mohamed Al Thani, Chairman of Air Arabia.

The airline attributed the growth in fully-year net profit to operating capacity expansion and increase in passenger traffic.

“This was achieved through the increase of operating capacity and the addition of new routes across our global network from all our hubs,” said Al Thani.

Last year, the airline expanded its operations and introduced 26 new routes within its global network. It also transported a total of 16.7 million travellers last year, representing a 31% increase in passenger traffic.

For the full year, total turnover stood at AED 6 billion, registering a 14% growth compared to AED 5.2 billion in 2022.

The company’s board is recommending a dividend of 20% of share capital, equivalent to 20 fils per share.

(Writing by Cleofe Maceda; editing by Brinda Darasha)