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Air Arabia's profit down on margin pressures; unrest means more concerns ahead

1-Mar-2011

The Middle East’s largest and most profitable LCC remained firmly in the black in 2010, with all key metrics up across the board. But the difficult environment weighed on the LCC’s performance and while Air Arabia remains in a competitive position, the high-growth period seen three years ago at the airline seems to have disappeared, as short-term issues come to the fore. [2367 words]

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Subheadings:

  • Net result down on cost and weaker revenue environment
  • Healthy net/EBIT margin maintained, dividends on the way
  • Chasing elusive yields increase
  • World-leading utilisation rates help keep unit costs down
  • Passenger traffic up the year
  • Is competition hurting pricing power?
  • Regional crisis likely dent second half
  • Subsidiaries also likely to take a hit
  • Competitively positioned for the upturn

Graphs and data:

  • Air Arabia net profit (LHS) and net profit margin (RHS)
  • Air Arabia revenue 2004-2010 (LHS) and year-on-year growth (RHS)
  • EBITDAR (LHS) and EBITDAR margin (LHS)
  • Revenue per passenger 2009 vs 2010
  • Costs per passenger (including fuel) 2009 vs 2010
  • Air Arabia‚Äôs major expense items as percentage of total costs
  • Fuel costs as a percentage of total operating expenses
  • Passenger numbers and load factor
  • Air Arabia network
  • Air Arabia capacity by region
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