Low-cost carrier Air Arabia posts 31% surge in net profits

 Low-cost carrier Air Arabia on Tuesday posted a 31 percent surge in net profits in the second quarter of 2012 on a yearly basis as revenues increased and the airline capitalised on underserved routes.

Net profit for the Middle East's largest no-frills carrier stood at 66 million dirhams ($18 million) in the three months to June 30, compared with 51 million dirhams ($13.9 million) in the same period last year, it said.

Revenues in the second quarter were up 23 percent to 729 million dirhams ($198.6 million) as passenger numbers increased by 15 percent to 1.3 million people, the Sharjah-based company said in a statement.

Net profit for the first half of 2012 amounted to 115 million dirhams ($31.3 million), 22 percent up from the corresponding period last year, Air Arabia said.

"In the second quarter of this year, our proven ability to identify and capitalise on underserved routes continued to reap enormous benefits," chairman Sheikh Abdullah bin Mohammad Al-Thani said in the statement.

The carrier, which has hubs in Egypt and Morocco, in addition to its UAE base, added two new routes in the first half of last year, to Taif in southwestern Saudi Arabia and Salalah in southwestern Oman.

It also increased flights to Nagpur in India, Dammam and Riyadh in Saudi Arabia, and Kuwait.

Air Arabia operates a fleet of 31 Airbus A320 planes. The carrier which began operations in 2003 serves 75 routes.