Complex Made Simple

UAE’s Air arabia Q1 net profit rises 9 pct, misses estimates

The airline carried 1.8 million passengers in the Q1 of 2015, up 10 percent year-on-year

DUBAI, May 10 (Reuters) – Budget carrier Air Arabia , the United Arab Emirates’ only listed airline, reported a 9 percent rise in first-quarter net profit on Sunday as it flew more passengers.

The Sharjah-based carrier made a net profit of 78.1 million dirhams ($21.3 million) in the three months to March 31, up from 71.7 million dirhams in the corresponding period of 2014, the company said in a statement.

Four analysts surveyed by Reuters had on average forecast Air Arabia would make a first-quarter profit of 95.0 million dirhams.

The airline carried 1.8 million passengers in the first quarter of 2015, up 10 percent year-on-year.

The company’s quarterly revenue was 886 million dirhams, up from 826.6 million dirhams a year ago.

Air Arabia blamed fuel hedging as it reported a 30 percent drop in fourth-quarter 2014 net profit, although the carrier said at the time that it would regain the benefits of the fuel hedge going forward.