Air Arabia reports 2010 results, to reduce annual dividend; Precision Air applies to list

Air Arabia's 2010 net profit fell 31.5% year-on-year to USD84.3 million. The carrier announced it intends to reduce its annual dividend from AED10 (USD2.72) in 2009 to AED8 (USD2.18) for 2010. Chairman Sheikh Abdullah Bin Mohammad Al Thani stated he saw "significant growth opportunities in 2011 based on Air Arabia's ongoing expansion strategy". Air Arabia shares finished the day 1.7% lower.

Air Arabia financial highlights for the 12 months ended 31-Dec-2010:

  • Revenue*: USD566.3 million, +5.5% year-on-year;
    • Passenger: USD514.2 million, +4.7%;
  • Direct costs: USD481.5 million, +12.0%;
    • Fuel: USD191.4 million, +23.4%;
    • Labour: USD 87.1 million, +5.5%;
  • EBITDAR: USD160.6 million, -20.5%;
  • Operating profit: USD20.4 million, 21.0%;
  • Net profit: USD84.3 million, -31.5%;
  • Passenger numbers: 4.5 million, +10%;
  • Passenger load factor: 83%, +3 ppts;
  • Revenue per passenger: USD 134.22, -5.7%;
  • Cost per passenger: USD108.1, +5.9%;
  • Cost per passenger excl fuel: USD65.07,  +1.7%;
  • Fleet: 25 aircraft, an increase of four aircraft;
  • Total assets: USD1734 million, +4.9%;
  • Total liabilities: USD270.4 million, +64.6%.

* Based on the conversion rate USD1 = AED3.67291

Tanzania's Capital Markets and Securities Authority (CMSA) CEO, Fratern Mboya stated Precision Air has already sent the application for listing approval on the Dar es Salaam Stock Exchange. Its IPO now awaits the approval of the regulators. The carrier reportedly hoped its offer would take off either late Feb-2011 or early Marc-2011. Precision Air seeks to raise USD25 million in the IPO, which will reduce Kenya Airways 49% stake. The other 51% is owned by founder and chairman, Michael Shirima.

Selected MEAAD daily share price movements (% change): 22-Feb-2011