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Air Arabia pays dividend despite net profit fall

Payment of 8 fils per share slightly below last year's figure.
Air Arabia is still returning money to shareholders, despite a fall in net profit last year.
Air Arabia is still returning money to shareholders, despite a fall in net profit last year.

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Air Arabia’s board has approved the distribution of an 8 fils per share annual cash dividend, despite a 31.5% drop in profit for 2010.

The company paid a dividend of 10 fils per share last year.

Despite the annual fall in profitability, 2010 net profit was still a respectable AED 309.56 million.

Turnover for the year stood at AED 2.08 billion, an increase of 5.5% year on year.

The Sharjah-based low cost carrier faces downward price pressure with the emergence of Flydubai, as well as higher costs due to rising fuel prices.

The airline flew 4.45 million passengers in 2010, a rise of 10% on the previous year.

Its seat load factor was 83%, an increase of three percentage points.

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