Air Arabia PJSC, the Middle East’s biggest discount airline, reported a 31 percent increase in second-quarter profit as revenue climbed, beating two analysts’ estimates.
Net income rose to 65 million dirhams ($18 million) from 49.6 million dirhams a year earlier, the Sharjah, United Arab Emirates-based airline said in a statement to the Dubai stock market today. EFG-Hermes Holding SAE estimated a profit of 53 million dirhams, while Securities & Investment Co. forecast at 51 million dirhams, according to data compiled by Bloomberg. Revenue jumped to 729.6 million dirhams from 592 million dirhams a year earlier.
Air Arabia, which competes with state-owned FlyDubai, is adding aircraft to its bases in Morocco and Egypt to capture a rebound in demand for travel following last year’s so-called Arab Spring, Chief Executive Officer Adel Ali said March 20. The company halted plans to establish a hub in Jordan in 2011 amid concern about uprisings in the Middle East and North Africa.
The shares rose 0.8 percent to 65.1 fils, headed for the highest close since April 17, at 1:42 p.m. in Dubai. The stock has climbed 11 percent this year compared with a 15 percent increase for the benchmark Dubai Financial Market General Index.