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11-Aug-2020 10:01 AM

Air Arabia reports USD46m loss in 1H2020, anticipates 'gradual' recovery from COVID-19 crisis

Air Arabia reported (10-Aug-2020) a net loss of AED169 million (USD46 million) in 1H2020, reflecting the significant impacts of COVID-19 on the airline. Turnover was AED1.02 billion (USD277.7 million), a decline of 53% year-on-year. Air Arabia chairman Abdullah Bin Mohamed Al Thani said the carrier commenced 2020 with "strong performance promising another year of growth and profitability", however the "full impact of COVID-19 on airline operations was fully materialised in the second quarter as a result of border closures and flights suspension across all key markets". He noted this change has "led airlines to focus on controlling cost while supporting global relief efforts with repatriation and aid flights". Air Arabia handled 2.48 million passengers in 1H2020, down 57%. Mr Al Thani concluded: "The prospects of the global aviation industry remain strong and will continue to play a vital role in the global economic recovery. While we started to see gradual opening of selective markets around the world, it is now clear that COVID-19 will continue to have a lasting impact on the aviation industry and the path to recovery is expected to be gradual. At Air Arabia, while we remain in a strong position weathering the COVID-19 impact, we continue to look at this challenge with a long-term view keeping business continuity as the prime focus". [more - original PR]

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