LONDON – Air Arabia (G9) today announced its financial results for Q4, ending December 31, 2020, as the global and regional aviation industry continues to grapple with the impact of the COVID-19 pandemic.
The company reported a net profit of AED 20m (US$5.45m) for the period, 90% less than in the Q4 of 2019.
During October to December 2020, the airline posted a turnover of AED 536m (US$145.93m), 53% less than the corresponding period in 2019, while serving more than 1.2m passengers across the carrier’s five hubs.
According to the company, the early measures taken by the airline to control overall cost while ensuring business continuity enabled G9 to register a profitable Q4 despite all-round industry performance impacted by the COVID-19 pandemic.
FY 2020 Highlights
For the FY ending December 31, 2020, G9 net loss to AED 192m (US$52.27m), despite the pandemic’s adverse effect on aviation and travel operations during the year.
The company’s turnover for the FY 2020 was AED 1.85bn (US$500m), and a total of 4.4m passengers were served from all five hubs.
In addition, the carrier took delivery of two new Airbus A321neo-LR aircraft and ended the year with a fleet of 57 Airbus A320 and A321.
New UAE Low Cost Carrier
The year 2020 witnessed the launch of Air Arabia Abu Dhabi (3L), which was formed following an agreement by Etihad Airways (EY) and Air Arabia (G9) to establish the capital’s first low-cost carrier.
The first 3L flight took off to Alexandria in July and was followed by the launch of eight additional routes from Abu Dhabi International Airport (AUH).
Statement from Air Arabia
Sheikh Abdullah Bin Mohamed Al Thani, CEO of G9, said, “G9’s ability to record a profitable Q4 despite the continued impact of the COVID-19 pandemic, is a testament to the robust business model it operates.”
“The early measures taken by the management team to control overall cost and the gradual resumption of flights, albeit to a limited number of destinations, helped in achieving profits in the Q4 and in significantly reducing the net loss for the FY 2020.”
Al Thani also said, “While the year 2021 continues to be a challenging one for the industry, we remain confident about the fundamentals of the aviation sector and the vital role air travel will continue to play in economic recovery.”
“At G9, we remain focused on adopting further measures to help improve the overall cost structure of the group and will continue to gradually resume operations where possible.”
Featured image: Air Arabia Airbus A320-214 reg. CN-NMF taxiing to the gate at Naples International Airport (NAP). Photo: Marco Macca – @aviator_ita