Low-cost Air Arabia has announced its cost-effectiveness

Created on 20.12.2021 09:44

Several airlines in the Middle East have managed to remain profitability even before the coronavirus pandemic. Emirates has become profitable at some point, but two other major Gulf airlines (Etihad and Qatar) have accumulated multibillion-dollar debt over the years. During the pandemic, even the successful Emirates suffered huge losses and was forced to resort to the public assistance of the Dubai government.

Air Arabia, a low-cost carrier from the emirate of Sharjah, is different from its competitors. The company has managed to reach a 10% operational profit within the first three quarters of this year. In the third quarter, this figure was 17%. While the fleet of other operators are closed, Air Arabia's aircrafts are still operated. The Air Arabia President Adel Ali named the main important reason: "We have an opportunity to improve our business efficiency."

Like most carriers, Air Arabia initially conducted a cost analysis and reduced the number of staff. However, while other airlines were reducing transport capacity during the crisis, Air Arabia was able to operate on the low-passenger market using only its narrow-body fleet by gaining a good revenue since the market offer was limited.

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