Air Arabia slips into a Dh169m H1 2020 loss as COVID-19 bite

Air Arabia slipped into a Dh169m loss for H1 2020, brought on the drastic measures taken by governments worldwide to contain the pandemic. In particular, it was Q2 that was heavily impacted. The carrier's turnover for the period registered Dh1.02b, a drop of 53% from the Dh2.17b last year. It carried a total of 2.48m passengers from all its four hubs in H1, a drop of 57% compared to H1 2019. Sheikh Abdullah Bin Mohamed Al Thani, Chairman, said: “Air Arabia started the year with strong performance... promising another year of growth and profitability. However, the unprecedent impact of COVID-19 left airlines battling the strongest challenge in its history. The full impact on airline operations was fully materialised in the second quarter as a result of border closures and flights suspension across all key markets. This fact has led airlines to focus on controlling cost while supporting global relief efforts with repatriation and aid flights”. The drop-off in Q2 numbers makes the reality all the more stark. Revenues for the April to June period was Dh120m, and leading to a yawning net loss of Dh239m. “The prospects of the global aviation industry remain strong and will continue to play a vital role in the global economic recovery," said Sheikh Abdullah. <br/>