Airline reports Dhs169 million net loss in H1

Business Bureau, Gulf Today

Air Arabia on Monday announced its financial and operational results for the first half of this year ending June 30, 2020 as the global aviation industry continues to battle the impact of COVID-19.

Air Arabia registered a net loss of Dhs169 million for the first half ending June 30, 2020, a direct result of second quarter performance being heavily impacted by COVID-19 and the subsequent cancellation of scheduled flight operations. The company’s turnover for the first six months of 2020 registered Dhs1.021 billion, a drop of 53 per cent compared to Dhs2.173 billion in the corresponding period last year. Air Arabia served a total 2.48 million passengers from all its four hubs in the first half of 2020, a drop of 57 per cent compared to first half of 2019.

The first half 2020 results were largely driven by the second quarter that witnessed the most severe impact of COVID-19 on airlines operation. Regular flight schedule was affected by airport closures and suspension of flights. Operations during the second quarter relied by large on repatriation, charter, and cargo flights. This resulted in lower revenues for the second quarter reaching Dhs120 million and consequently impacting the second quarter profitability to a net loss of Dhs239 million. Sheikh Abdullah Bin Mohamed Al Thani, Chairman of Air Arabia, said: “Air Arabia started the year 2020 with strong performance promising another year of growth and profitability. However, the unprecedent impact of COVID-19 left airlines worldwide battling the strongest challenge in its history.”