Air Arabia Q1 profit up 16% as passenger numbers improve

Air Arabia on Sunday posted a 16% jump in Q1 profit, citing a rise in passenger numbers. The Middle East budget airline reported a full-year loss for 2018 after booking impairments mainly attributable to its exposure to collapsed private equity firm Abraaj. Air Arabia made a net profit of 128m dirhams ($34.9m) in the three months to March 31 on revenue up 17% to 1b dirhams, it said. The airline carried 2.8m passengers, which it said was up 8% year on year, and filled an average of 84% of seats, 3% more than a year ago. Chairman Sheikh Abdullah Bin Mohamed al-Thani warned that oil prices, geopolitical and economic developments are affecting trading conditions but said the airline was confident in the “long-term fundamentals” of the region’s aviation sector. CE Adel Ali had said on April 30 that the entire exposure to Abraaj was booked in impairments in the 2018 results so the airline could concentrate on its business. “The legal side is taking care of it,” he said. The airline said in January that it had launched legal proceedings against Abraaj founder Arif Naqvi.<br/>