Air Arabia; the world’s most profitable carrier does it again – Share Wrap

Air Arabia has converted a 21% increase in first quarter revenue into a 32% increase in net profit, producing an industry leading net margin of 22% - an outstanding achievement given the global economic environment (and even better than Allegiant's 19.7% 1Q09 margin). Superb fleet utilisation rates, low fuel prices, a simple operating model and a dominant position within the growing Sharjah economy are the hallmarks of Air Arabia's success. However, the arrival in a couple of months of FlyDubai could mark the start of the erosion of Air Arabia's stunning run of profit growth.