Middle East budget airline Air Arabia swung to a quarterly profit as revenue more than quadrupled and passenger traffic increased across its five bases amid a gradual recovery in air travel from the Covid-19 pandemic.
The airline posted a Dh10 million ($2.72m) net profit in the three months to June 30, compared with a Dh239m loss in the same period a year earlier, Air Arabia said on Monday. Quarterly revenue was up 313 per cent to Dh496m.
"While flights' resumption compared to pre-pandemic are still subject to many restrictions, the second quarter of 2021 witnessed gradual improvement in comparison to same quarter last year, which was heavily [affected] by the subsequent cancellation of scheduled flight operations," Sheikh Abdullah bin Mohamed Al Thani, chairman of Air Arabia, said.
This is the third consecutive profitable quarter that the company registered since the pandemic hit.
"We remain optimistic that the gradual ease on travel restrictions and resumption of operations will continue to help the industry in its path to recovery," Sheikh Abdullah said.
In the first half of the year, Air Arabia reported a net profit of Dh44m for the six months ending June 30, compared to a net loss of Dh169m in the same period in 2020.
In the first six months of 2021 the airline posted a turnover of Dh1 billion, a 5 per cent increase compared to the corresponding period last year, Air Arabia said.
“Air Arabia’s ability to post a profitable first half 2021, despite the continued [effects] of the Covid-19 pandemic on the aviation industry worldwide, is a direct result of the cost-control measures adopted by the management team and supported by the gradual resumption of operations witnessed in the first half," Sheikh Abdullah said.
More than 2.3 million passengers flew with Air Arabia between January and June this year across the airline’s five bases, down from 2.48 million passengers from four hubs in the first half of 2020.
Air Arabia’s average seat load factor – passengers carried as a percentage of available seats – during the first six months of 2021 stood at 73 per cent on average.
The Dubai Financial Market-listed airline expanded its route network in the first half of the year by launching new flights from its bases in the UAE and Egypt.
"Summer has seen good progress. July and August have been very promising," Adel Ali, Air Arabia group chief executive, told Bloomberg TV in an interview on Tuesday.
"Flights are full, wherever it has not been blocked or complicated by various airports around the world people want to get to."
Mr Ali said he is "now more optimistic" as people adapt to the Covid-19 pandemic and there is pent-up demand to travel more.
"I am feeling good at the moment about the future and let us hope we don't get more surprises," he said.
In July, Air Arabia Group signed an agreement with the Armenian National Interests Fund to launch Armenia’s new national airline. The Sharjah-based group will hold a 49 per cent stake in the joint venture airline and will manage the business, Mr Ali said.
The Armenian budget airline, which will begin operations in the summer of 2022, will lease aircraft to "close the gap" until Air Arabia receives its order of 120 Airbus narrow-body jets in 2024, he said.
Air Arabia has advertised for jobs at the Armenian venture – including for cabin crew, pilots and administrative positions – and has hired staff in other hubs after the pandemic-induced slowdown in air travel forced the airline to cut its workforce.
"We have brought in quite a lot of people already that we needed to gear up for the current business we have in the UAE, Morocco and Egypt," Mr Ali said.
Meanwhile, Air Arabia Abu Dhabi, a joint venture between Air Arabia and Etihad Airways, plans to expand its fleet to 20 Airbus aircraft over the next five years amid optimism about future growth once air travel restrictions are eased, Mr Ali told The National in an interview in June.
The airline, which currently operates three Airbus A320s in the UAE capital, also expects annual passenger traffic to initially grow by 20 per cent to 25 per cent over the same period, he said at the time.
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How to turn your property into a holiday home
- Ensure decoration and styling – and portal photography – quality is high to achieve maximum rates.
- Research equivalent Airbnb homes in your location to ensure competitiveness.
- Post on all relevant platforms to reach the widest audience; whether you let personally or via an agency know your potential guest profile – aiming for the wrong demographic may leave your property empty.
- Factor in costs when working out if holiday letting is beneficial. The annual DCTM fee runs from Dh370 for a one-bedroom flat to Dh1,200. Tourism tax is Dh10-15 per bedroom, per night.
- Check your management company has a physical office, a valid DTCM licence and is licencing your property and paying tourism taxes. For transparency, regularly view your booking calendar.
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
Killing of Qassem Suleimani
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
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Engine: Four electric motors, one at each wheel
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MATCH INFO
Uefa Champioons League semi-final:
First leg: Liverpool 5 Roma 2
Second leg: Wednesday, May 2, Stadio Olimpico, Rome
TV: BeIN Sports, 10.45pm (UAE)
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
COMPANY PROFILE
● Company: Bidzi
● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine
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Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
Global state-owned investor ranking by size
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1.
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United States
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2.
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China
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3.
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UAE
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4.
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Japan
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5
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Norway
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6.
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Canada
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7.
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Singapore
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8.
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Australia
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9.
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Saudi Arabia
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10.
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South Korea
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