Air Arabia profit slips 6% in 2015

Sharjah-based budget carrier Air Arabia said on Sunday its 2015 net profit fell six percent to 531 million dirhams ($144.69 million) although turnover rose slightly.

The Middle East's first and largest low-cost airline said its turnover was 3.8 billion dirhams ($1.04 billion) in 2015, three percent up on the previous year, while passenger numbers rose 12 percent to 7.6 million.

In the fourth quarter, net profit was 13 percent lower than in 2014, standing at 59 million dirhams ($16.08 million).

"The impact of low oil prices continues to have its effect on the wider global economy, while pressure on yields and geo-political uncertainty continued to weigh on the aviation industry," Air Arabia chairman Sheikh Abdullah bin Mohammad al-Thani said in a statement.

"Despite these challenges, Air Arabia once again delivered a strong set of numbers and remains well positioned for further growth in 2016," he added.

The airline, which began operations from the emirate of Sharjah in 2003, now has other hubs in Egypt, Jordan and Morocco. It operates a fleet of 44 narrow-body Airbus A320s serving 101 destinations.

The company also has orders for 44 additional Airbus A320 aircraft.