Tuesday, May 14, 2013
(This story was originally published Monday.)
DUBAI (Zawya Dow Jones)--U.A.E.-based Air Arabia (AIRARABI.DFM) said net profit in the first-quarter surged 20% as the low-cost airline carried more passengers and opened new routes.
The airline, which has hubs in Sharjah, Alexandria and Casablanca, said net income amounted to 59 million U.A.E. dirhams ($16 million) in the three months ending March 31., up from AED49 million in the year ago quarter.
The result beat the AED52.2 million estimate that analysts at Sico had predicted.
Last month, Air Arabia said it carried nearly 1.45 million passengers in the first quarter of 2013, up 18% from the same period a year earlier. During the latest three-month period it launched flights from its primary hub in Sharjah to Baghdad, Pakistan's Sialkot, and to Mattala in Sri Lanka.
"As the airline is on a steady growth trajectory, the sustained profitability and solid growth margins enable Air Arabia to enter new geographies and launch new ventures," Sheikh Abdullah Bin Mohammad Al Thani, the chairman of Air Arabia, said in Monday's statement.
Last week, Adel Ali, the chief executive of Air Arabia, told Zawya Dow Jones on the sidelines of a Dubai conference, that the company is in talks with both Boeing Co. and Airbus to place a new bulk order for aircraft as the low-cost carrier reviews its five-year strategy.
Air Arabia took delivery of two aircraft from Airbus in the first three months of 2013. The airline will receive four more A320 aircraft this year, which is in line with Air Arabia's plan to further expand its network and significantly grow the size of its fleet by 2016.
Write to Tim Falconer at tim.falconer@dowjones.com
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(END) Dow Jones Newswires
14-05-13 0338GMT
