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FINANCIAL NEWS
Air Arabia sees 51% slump in Q1 profit
07 May 2010
(MENAFN) UAE?s low cost carrier Air Arabia reported a sharp decline in its first-quarter net profit, which dropped 51 percent due to higher fuel costs and pressure on yield margins.
The airline said in a statement that its net profit reached $13.62 million in the first three months of the year, down from $28 million a year earlier.
Chief Executive, Adel Ali, said that the lingering impact of the global financial crisis and the hike in fuel cost continued to affect the profitability of airlines worldwide.
It is worth mentioning that Air Arabia is under pressure from rivals such as Kuwait’s Jazeera Airways and Dubai-owned flydubai, as well as from bigger carriers struggling to cope with a sharp decline in international passenger travel.
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