Air Arabia reported a solid AED 415 million net profit for the second quarter of 2025, showing resilience despite geopolitical turbulence and sector-wide challenges. With robust passenger growth, high seat load factors, and ongoing network expansion, the carrier strengthened its footprint as the region’s leading low-cost airline. The results come as Air Arabia also secures a pivotal role in launching a new Saudi-based low-cost airline, signaling deeper regional integration and future growth.

Q2 2025 performance: Stable profit, strong passenger growth

Air Arabia (PJSC), the largest low-cost carrier in the Middle East and North Africa, reported a net profit of AED 415 million for the second quarter of 2025, ending June 30. While this marked a 3% decline from the AED 427 million posted in the same quarter of 2024, the airline still maintained a strong financial position amid regional unrest and operational disruptions. Turnover for the quarter reached AED 1.69 billion, a 2% increase year-on-year. The airline saw a 15% rise in passenger numbers, with over 5.1 million travelers flying across its network compared to 4.5 million in Q2 2024. The seat load factor, an indicator of seat occupancy, rose by 6 percentage points to reach 85%, reflecting high demand and effective capacity management. Chairman Sheikh Abdullah Bin Mohammad Al Thani attributed the performance to the resilience of Air Arabia’s business model and its proactive approach to mitigating the impact of regional conflict and flight disruptions. He noted that, despite external challenges, the airline continued to invest in increasing operational capacity and network reach across its multiple hubs.

H1 2025 overview: Profits up, network expands

For the first half of 2025 (January–June), Air Arabia recorded a net profit of AED 770 million, an 11% increase from AED 693 million in H1 2024. Revenue also saw growth, climbing 8% year-on-year to AED 3.44 billion, up from AED 3.19 billion. Passenger traffic rose to over 10.1 million, reflecting 13% growth over the same period last year. The average seat load factor for H1 2025 stood at 84%. Key operational moves during this period included:

Chairman Al Thani acknowledged the airline’s continued growth amid fuel price volatility, currency fluctuations, political instability, and supply chain constraints, crediting the performance to a clear strategy and capable leadership. He reaffirmed the airline’s ongoing commitment to enhancing connectivity, operational efficiency, and innovation, with a focus on sustainable long-term growth.

Sustainability and recognition

Air Arabia maintained its standing in the MSCI ESG Ratings’ “Leader” category, earning an “AA” score. It also obtained a Limited Assurance Statement for its 2024 ESG Report, aligned with the ISAE 3000 international assurance standard. These developments underscore the airline’s focus on transparency, accountability, and ESG-driven performance. In June 2025, the airline was once again named among Forbes Middle East’s “Top 100 Listed Companies”, securing a spot for the second consecutive year.

Air Arabia-led consortium wins license for new Saudi low-cost airline

Earlier last month, on July 20, 2025, a consortium led by Air Arabia, along with Saudi partners Kun Investment Holding and Nesma Group, won the bid to operate a new Saudi-licensed low-cost airline. The license, granted by the General Authority of Civil Aviation (GACA), authorizes the launch of a carrier based at King Fahd International Airport in Dammam.The airline will start with a fleet of 45 aircraft, connecting 24 domestic cities and 57 international destinations. It aims to serve approximately 10 million passengers annually by 2030 and generate over 2,400 new jobs.This win marks a strategic milestone for Air Arabia, shifting its role in Saudi Arabia from an international service provider to a domestic operator with a full-fledged hub. The project aligns with Saudi Arabia’s Vision 2030 objectives to liberalize aviation, expand connectivity, ease pressure on major airports, and attract $100 billion in sector investment while enhancing affordable travel options.

About Air Arabia

Air Arabia, based in Sharjah, UAE, is the first and largest low-cost carrier in the Middle East, having launched in 2003. The airline operates a fleet of approximately 74 Airbus A320s and 9 A321 Neo LR aircraft, offering affordable, no-frills service to over 200 destinations across more than 30 countries, including cities in the Middle East, North Africa, Asia, and Europe. Its operations are supported by strategic hubs in Sharjah, Casablanca, Ras Al Khaimah, and Alexandria. As a growing airline group, Air Arabia also manages several affiliated carriers under its umbrella, including Air Arabia Abu Dhabi, Air Arabia Egypt, Air Arabia Jordan, Air Arabia Maroc, Air Arabia Sudan, Fly Arna, Fly Jinnah, and Fly Yeti.