10% cash dividend approved at Air Arabia Annual General Meeting

In the course of the Annual General Meeting, the assembly approved the report of the company's auditors for the financial year ending December 31, 2008. The assembly also approved the balance sheet and profit and loss accounts of the company for the same period.

The first and largest low-cost carrier in the Middle East and North Africa, Air Arabia achieved a net profit of Dhs510m in 2008, an increase of 35.6% compared to Dhs376m in 2007. During the same period, the carrier posted a turnover of Dhs2.066bn, up 61% compared to Dhs1.283bn in 2007.

Finally, the assembly discharged the directors and auditors of the company from liability for the financial year ending December 31, 2008, and appointed auditors for the company for the next fiscal year in order to fix their remuneration.

Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, said:

"Founded just over five years ago, Air Arabia is now firmly established as one of the region's true success stories - and we are very pleased to be able to share that success with our shareholders, while still preserving sufficient capital to ensure the implementation our ambitious long-term growth strategy."

He added, "Thanks to the commitment of our customers, investors and staff, Air Arabia has been able to record truly stellar growth, despite extremely challenging conditions facing the aviation sector worldwide."

"We are proud of how well we have adapted to rapidly evolving market conditions so far, and remain fully committed to delivering value-for-money service to our customers and providing them with an increasing range of exciting destinations across the many markets we serve," he said. "While 2009 will undoubtedly be year of new challenges for the sector as a whole, Air Arabia will continue to seize every opportunity to meet those challenges head on, as we strive to reach even greater heights."

In 2008, the carrier introduced seven new destinations, and currently serves 44 destinations across the Middle East, North Africa, Indian Subcontinent, Eastern Europe and Central Asia. In April 2009, Air Arabia will introduce service to two new destinations: Athens, Greece, and Goa, India.

Last year, the carrier announced that it would establish operations from a new hub in Morocco, which is set to commence operations very shortly. Air Arabia also announced last year the launch of a 300-room budget hotel, and introduced new services such as early check-in and pre-flight seat selection.