Air Arabia Board of Directors approved (21-Mar-2011) the distribution of a cash dividend of 8% of the company’s share capital. The assembly also approved the company’s auditors for the financial year ending 31-Dec-2010. The assembly also approved the balance sheet and profit and loss accounts of the company for the same period. [more]
8% dividend approved at Air Arabia AGM
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Monarch Airlines: group receives new cash from Greybull Capital but profit outlook is down
The latest investment in the Monarch Group by its majority shareholder Greybull Capital avoided the loss of its ATOL licences and the possible suspension of operations. Moreover, it has given Monarch the opportunity to bridge the gap between now and the planned delivery of the first of its new 30 Boeing 737MAX aircraft in 2018.
Nevertheless, Monarch continues to face significant challenges. Europe's short/medium-haul markets are feeling significant downward pressure on unit revenue – particularly in the leisure markets that Monarch serves. This is due to overcapacity and concerns about terrorism in key Monarch markets. Brexit and the sharp devaluation of GBP (it has fallen by 30% against the EUR over the past 12 months) are further challenges for the LCC.
Although Monarch quickly quashed rumours of its financial difficulties in late Sep-2016 and then secured new funds, its commentary indicated that its profit for the year to Oct-2016 would be lower than in the previous year. It has an uneven track record of profitability and has often flown with close to empty cash reserves. Those reserves have been partially replenished, but only sustainable improvements in profitability will avoid the need for further cash calls in the future.
flydubai outlook improves, with reduced losses and faster rebound despite global uncertainty
As airlines worry about having passed their peaks and entering a downturn, flydubai, the LCC owned by the Dubai government, is on an upwards trajectory. This is very welcome after flydubai's sudden and sharp 1H2015 loss occurred as most other airlines were in party mode, buoyed by low fuel prices. flydubai significantly narrowed its 1H2016 loss despite double-digit growth. With the industry worrying about its health, flydubai appears to have caught the cold early and rebounded from it. An improvement in load factor, uplift in business traffic (19%) and reduction in expenses may show greater efficiency that can be maintained – the silver lining to the financial upset.
flydubai's 1H2016 loss narrowed to USD24.5 million from 1H2015's USD40 million, despite a 14.9% increase in flights. Losses per passenger decreased about nine percentage points faster. Unlike its bigger sister Emirates, also owned by the Dubai government but run separately, flydubai is primarily a point-to-point operator - so it depends on the health of Dubai.