Air Arabia Achieves Record Pre-Tax Profit of AED 1.8 Billion in 2025 with 15% Revenue Growth

Sharjah | EcoPulse24

Air Arabia PJSC reported its strongest financial and operational results ever for the fiscal year ending December 31, 2025, driven by continued strong demand, strategic network expansion, and operational and financial discipline despite geopolitical and economic challenges.

The company announced a record pre-tax net profit of AED 1.8 billion for 2025, a 14% increase compared to AED 1.6 billion in 2024. Group revenues exceeded AED 7.78 billion, recording annual growth of 15% compared to AED 6.76 billion in the previous year.

Operational growth accelerated in 2025, with Air Arabia adding 30 new destinations across its operational hubs. This resulted in a 10% increase in operational capacity and a 16% rise in total passengers to 21.8 million. Seat occupancy averaged 85%, up 4 percentage points, reflecting strong demand and the efficiency of its low-cost, value-driven business model.

For shareholders, the Board recommended a cash dividend equal to 30% of capital, or 30 fils per share, subject to approval at the upcoming annual general meeting.

Sheikh Abdullah bin Mohammed Al Thani, Chairman of Air Arabia, stated that 2025 was the strongest year in the company’s history in terms of financial and operational performance, attributing results to the ambitious growth strategy, customer trust, and the ability to achieve profitability while expanding its network and enhancing operational efficiency.

He added that despite challenges - including geopolitical tensions, inflation, and supply chain disruptions - the company maintained its focus on operational efficiency and delivering added value to customers. This enabled Air Arabia to expand its passenger base, strengthen presence in key markets, and deliver sustainable long-term value for shareholders.

In Q4 2025, Air Arabia posted a net profit of AED 405 million, up 15% from AED 351 million in the same period last year. Fourth-quarter revenues rose 26% to AED 2.12 billion, supported by a 22% increase in passenger numbers to over 5.7 million and a seat occupancy rate of 87%.

By the end of 2025, the group operated a total of 219 destinations from its hubs in the UAE, Morocco, Egypt, and Pakistan, with fleet and capacity increasing by 10% year-on-year.

In sustainability and governance, Air Arabia maintained its “Leaders” category in the MSCI ESG Index with an AA rating, achieved a score of 39 from S&P Global in 2025 (up 14 points from 2024), and received its first CDP rating for carbon emission reduction strategy with an overall B- grade.

EcoPulse24 Analysis:
Air Arabia’s 2025 results highlight the strength of the low-cost airline model in achieving sustainable profit growth even amid geopolitical volatility and rising costs. Balanced growth in capacity, improved occupancy rates, and geographic expansion point to genuine demand rather than price-driven growth. The generous dividend reflects management’s confidence in future cash flows. Economically, Air Arabia stands out as a primary beneficiary of the recovery in regional and international travel, with operational flexibility positioning it for continued growth into 2026 while maintaining financial discipline.