Air Arabia s net profit drop
Posted: Tue 22 Feb, 2011 3:21 PM
Air Arabia has recorded a 37% decline in net profit for Q4 and has unveiled plans of cutting dividends amid rising competition and higher fuel prices.
Reuters has released a report showing budget airline Air Arabia s net profit of AED73.2-million for the last quarter of 2010, a drop from AED115.68-million from the fourth quarter figures of 2009. A Reuters survey conducted in January has also shown a forecast by five analysts anticipating an average profit of AED97.42-million. Air Arabia s Board has proposed an annual dividend of eight per cent of capital, equal to eight fils per share; in 2009, the company paid out a dividend of 10 fils per share. According to a report in eTurbo News, Credit Suisse has warned that the airline could cut its 2010 dividend given weak first-half results, and more margin pressures could be expected due to limited room for further cost savings.
Air Arabia was set up in 2003 in the United Arab Emirates and currently has hubs in Morocco and Egypt. It is set to open its new Jordan hub in June 2011.
