Air Arabia reports revenue increase of 4%; Fly540 to launch Nairobi-Ukunda service

Air Arabia revenue was up 4% on the following financial highlights for the three months ended 30-Sep-2010:

  • Revenue*: USD154.7 million, +3.8% year-on-year;
  • Cost of sales: USD121.8 million, +9.1%;
  • Gross profit: USD32.9 million, -12.2%;
  • Net profit: USD37.0 million, -5.6%;
  • Passenger numbers: 1.1 million, +14%;
  • Average seat factor: 84%, +8.5 ppts;
  • Revenue per passenger: USD141.3, -11%;
  • Cost per passenger: USD108.9, -9%;
  • Cost per passenger excl fuel: USD64.5, -17%;
  • Total assets: USD1621 million, -1.9% when compared with the period ended 31-Dc-2009;
  • Bank balances and cash: USD590.1 million, +8.6% when compared with the period ended 31-Dc-2009;
  • Total liabilities: USD180.5 million, +9.9% when compared with the period ended 31-Dc-2009.
    • *Based on the conversion rate at USD1 = AED3.67265

Air Arabia CEO Adel Ali stated the carrier plans to invest as much as USD3.6 billion on 44 new aircraft over the next three years as part of its regional expansion.

See related CAPA profile: Financial results

Lonrho shares dropped 4.1% on Wednesday (10-Nov-2010). On the same day, Lonrho’s subsidiary, Fly540, announced plans to introduce seven times weekly Nairobi-Ukunda services from 12-Nov-2010.

Selected African and Middle Eastern airlines share price movements: (% change): 10-Nov-2010