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Air Arabia Faces Profit Dip Amid Regional Instability

Thu, May 14, 2026(54d ago)Business

Air Arabia saw its net profit decline by 22 percent in the first quarter of 2026, falling to Dh278 million from Dh355 million during the same timeframe last year. This downturn was largely driven by regional conflict involving the US, Israel, and Iran, which erupted in late May and forced airlines throughout the UAE and the Gulf to contend with mandatory airspace closures and significant operational disruptions. Despite these hurdles, the Sharjah-based carrier managed to maintain a turnover of Dh1.8 billion, marking a marginal 1 percent year-on-year increase, while its passenger load factor climbed to an impressive 86 percent.

Sheikh Abdullah bin Mohammad Al Thani, chairman of Air Arabia, credited the airline's resilience to its multi-hub business model and disciplined cost-management strategies. While the carrier served 4.7 million passengers during the period—a slight 5 percent dip compared to the previous year—it continued to leverage its fleet of 90 Airbus aircraft across its international hubs. Looking forward, the company remains cautious, citing ongoing global concerns such as fuel price volatility and inflationary pressures, yet leadership remains confident in the airline's ability to navigate these economic uncertainties while continuing to provide consistent value to its travelers.

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