Air Arabia profit rises 7 % to Dh78.7m

Air Arabia on Saturday announced a 7 per cent increase in net profits for the fourth quarter and proposed a dividend of 4.5 fils per share. Net profit for the three months ending December 31, 2011 were Dh78.7 million, compared to Dh73.6 million in the fourth quarter of 2010. The company's turnover for the fourth quarter 2011 reached Dh638 million, an increase of 17 per cent compared to Dh544.8 million in 2010. The results were announced following a meeting on Saturday of the Board of Directors of Air Arabia, who have proposed a dividend distribution of 4.5 per cent of capital, which is equivalent to 4.5 fils per share. This proposal is subject to ratification by the shareholders of Air Arabia at the company's upcoming Annual General Meeting. Shaikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, described these results of cost controls and appealing product offerings. "The year 2011 saw ongoing political unrest in the region, as global fuel prices also surged. While these challenging market conditions continue to impact the performance of the aviation sector here in the Middle East and worldwide, we have focused more keenly than ever on ensuring the highest level of operational efficiency," he said. Air Arabia operates flights to some 70 destinations from three regional hubs. The airline's net profit for the full year was in line with analyst forecasts, reaching a solid Dh274 million.