Air Arabia Profits Fall 47% to AED 757 Million Despite Revenue Growth in First Nine Months of 2026

Passenger numbers decline 10% to 14.4 million, while seat occupancy remains steady at 83% as the airline expands its network to 224 routes with a fleet of 100 aircraft.

Air Arabia reported a pre-tax profit of AED 757 million for the nine months ended September 30, 2026, representing a 47% decline compared with the same period last year, despite a 2% increase in group revenue to AED 5.81 billion.

The results, announced on November 12, showed that passenger numbers across the airline's operating hubs fell by 10% to 14.4 million, while the average seat load factor remained at 83%, amid operational pressures linked to regional tensions, higher fuel prices and supply chain disruptions.

According to the financial statements, net profit after tax amounted to approximately AED 684 million.

During the third quarter of 2026, Air Arabia recorded a pre-tax profit of AED 383 million, down 42% year-on-year, while revenue increased by 10% to AED 2.31 billion.

The airline carried more than 5.7 million passengers between July and September, representing a 3% decline compared with the corresponding quarter of 2025, while the seat load factor stood at 82%.

Sheikh Abdullah bin Mohammed Al Thani, Chairman of Air Arabia, said the company continued to generate profits despite rising operating costs, fluctuating fuel prices and ongoing supply chain challenges.

He noted that the group's focus on operational efficiency, cost control and network development had helped it navigate challenging economic and operational conditions.

Air Arabia continued expanding its network during the first nine months of the year, adding 14 routes across its operating hubs in the UAE, Morocco, Egypt, Pakistan and Saudi Arabia, bringing its total network to 224 routes.

The group also added ten aircraft to its fleet, bringing the total to 100 Airbus A320 and A321 aircraft, with plans to receive four additional aircraft before the end of 2026.

September also marked the launch of operations by the new Dammam-based airline, established through a consortium led by Air Arabia, with domestic services connecting Dammam to Jeddah, Madinah and Riyadh.

Air Arabia's results indicate continued demand for low-cost air travel services, alongside challenges affecting operational volumes and profitability margins.

The stable seat load factor of 83% suggests that a high proportion of available capacity continues to be utilised. However, this indicator alone does not establish the overall direction of passenger demand or ticket prices.

For travellers, the expansion of routes and fleet capacity could provide additional air connectivity options, particularly with the airline's entry into the Saudi domestic market through its Dammam hub.

For tourism destinations, the growth of low-cost carriers remains an important factor in improving access to international visitor markets. However, the actual benefits depend on operational reliability, seat availability and competitive fares.

The results also demonstrate that continued revenue growth does not necessarily translate into higher profits, highlighting the aviation industry's sensitivity to fuel costs and operational disruption