DUBAI: Air Arabia reported a 51% decline in first-half net profit to AED 374 million ($102 million), as the Middle East and North Africa’s largest low-cost airline faced significant operational and cost pressures from the ongoing regional conflict.
For the six months ended June 30, 2026, revenue fell 1% to AED 3.48 billion, compared with AED 3.52 billion during the same period last year.
The airline carried more than 8.7 million passengers across its operating hubs, a 14% year-on-year decline. Despite the reduction, its average seat load factor remained at 83%, indicating continued demand for its services despite disruptions to operations.
The impact was more pronounced in the second quarter. Net profit dropped 77% to AED 96 million, while revenue declined 3% to AED 1.68 billion. Passenger traffic fell 23% to more than 3.9 million, reflecting reduced capacity, while the average seat load factor stood at 81%.
Air Arabia said its performance was significantly affected by the regional conflict, which began in February and disrupted aviation operations throughout the remainder of the first half.
Multiple airspace closures, temporary operational restrictions and reduced capacity affected the airline’s network, while record-high fuel prices added to operating costs.
Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, said the airline’s ability to remain profitable despite the disruption demonstrated the resilience of its business model and financial position.
He said the carrier focused on preserving network connectivity, adapting operations to changing conditions and maintaining strict cost controls while protecting operational efficiency.
Despite the difficult operating environment, Air Arabia continued expanding its fleet and network during the first half of the year.
The airline added six aircraft, bringing its fleet to 96 owned and leased Airbus A320 and A321 aircraft. It also introduced five new routes across its hubs in the UAE, Morocco, Egypt and Pakistan.
In June, Air Arabia was named “Most Sustainable Low-Cost Airline in the MENA Region 2026” by World Finance Magazine as part of its annual Sustainability Awards Programme.
Sheikh Abdullah said the airline remained confident in its underlying business strength as market conditions improve. He added that Air Arabia would continue focusing on responsible network expansion, financial discipline and its value-focused offering while seeking to create sustainable long-term value for stakeholders.
Source: TradeArabia