Sharjah-based low-cost carrier Air Arabia on Thursday reported a net profit of Dh374 million for the first half of 2026, down 51 per cent compared with the same period last year, as the regional conflict disrupted operations across its network.
Revenues for the six months ended June 30, 2026 declined one per cent to Dh3.48 billion, compared with Dh3.52 billion in the corresponding period of 2025.
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More than 8.7 million passengers travelled across the airline’s operating hubs during the first half, a 14 per cent decline compared with H1 2025, reflecting reduced operating capacity resulting from the ongoing regional conflict.
Despite this, the airline maintained a strong average seat load factor of 83 per cent, underscoring continued resilience in demand across its network.
Q2 performance
For the second quarter alone, Air Arabia reported a net profit of Dh96 million, down 77 per cent year-on-year, while revenues fell 3 per cent to Dh1.68 billion. The carrier flew more than 3.9 million passengers during the quarter, a 23 per cent decline compared with the same period last year, while the average seat load factor stood at 81 per cent.
“Air Arabia’s ability to remain profitable during the first half of the year, amid the geopolitical conflict that disrupted the aviation industry throughout the period, reflects the resilience of our business model, the strength of our financial position, and the agility of our management team,” said Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia.
“The conflict significantly impacted the industry through multiple airspace closures, reduced operating capacity, and rising operating costs driven by record-high fuel prices. Throughout this period, we remained focused on maintaining network connectivity, adapting our operations to rapidly evolving circumstances, and exercising disciplined cost management while preserving operational efficiency,” he added.
The airline said its first-half performance was largely impacted by the regional conflict, which began in February and continued through the rest of the period, leading to airspace closures, temporary operational restrictions, reduced operating capacity, and record-high fuel prices.
Fleet expansion and new routes
During the first half, Air Arabia added six aircraft to its fleet, bringing its total to 96 owned and leased Airbus A320 and A321 aircraft. The carrier also launched five new routes across its operating hubs in the UAE, Morocco, Egypt, and Pakistan.
Sheikh Abdullah struck a confident note on the outlook for the remainder of the year.
“As market conditions continue to improve, we remain confident in the strength of the business fundamentals and our ability to navigate an evolving operating environment,” he said.
Source: Khaleej Times