Airlines giant Air Arabia experiences growth in passenger numbers, yet falls short in Q2 profits.
In the first half of 2025, Air Arabia, the Middle East's leading low-cost carrier, demonstrated remarkable resilience and growth. The airline reported an 8% increase in turnover, reaching Dh3.44 billion, and a net profit of Dh770 million, a 11% increase from the same period last year.
The airline's success was further validated by its inclusion in Forbes Middle East's "Top 100 Listed Companies" for the second consecutive year. Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, attributed the results to the carrier's resilience and effective growth strategy.
Looking ahead, Al Thani stated that the airline will focus on expanding connectivity, entering new markets, and improving operational efficiency. Deliveries from an order of 120 new aircraft are expected to begin by year-end, positioning Air Arabia for continued growth.
In the meantime, Air Arabia has launched 13 new routes across its hubs in the UAE, Morocco, Egypt, and Pakistan. These strategic moves have contributed to a 13% increase in passenger numbers, reaching 10.1 million in H1 2025. The average seat load factor for the period stood at 84%, with Q2 2025 showing an improvement to 85%.
Air Arabia's revenue for Q2 2025 was Dh1.69 billion, a 2% year-on-year increase. The airline added two aircraft to its fleet in H1 2025, bringing the total to 83 Airbus A320 and A321 jets.
Al Thani also mentioned a focus on maintaining shareholder value and sustainable growth. In line with this, the company maintained its 'Leader' category status in the MSCI ESG Ratings with an "AA" score, reflecting its commitment to environmental, social, and governance excellence.
As for the future of renewable energy, the average payback period for a solar panel investment in 2025 ranges from about 6 to 10 years, depending on location, system cost, electricity rates, and incentives. In California, the payback is typically around 8 to 10 years due to high electricity costs and good sunlight, while in Australia, with current incentives, it is often between 6 and 10 years. Nationally in the U.S., the average payback tends to be about 7.3 years. Key factors affecting payback time include system cost, electricity consumption and rates, incentives and tax credits, sunlight availability, and electricity inflation.
With current technology, incentives, and pricing in 2025, most residential solar panel investments tend to pay off within roughly 6 to 10 years, after which energy savings effectively become a financial gain. This underscores Air Arabia's commitment to sustainable practices, not just in its operations but also in its strategic investments.
- The inclusion of Air Arabia in Forbes Middle East's "Top 100 Listed Companies" for the second consecutive year, along with its financial growth and expansion plans, highlights the airline's success in the business sector.
- Air Arabia's focus on renewable energy investments, as demonstrated by its commitment to sustainable practices, aligns with the current trends in the lifestyle and travel industries, aiming for environmentally friendly solutions.
- With deliveries of new aircraft on the horizon and a growing network of destinations, Air Arabia's continued emphasis on operational efficiency and entry into new markets indicates forward momentum in the finance and travel news arenas.
