DUBAI – UAE-based low-cost carrier Air Arabia’s fourth-quarter net profit fell 15.2 percent, but beat most analysts’ forecasts, while its full-year profit declined 11.3 percent.

Fourth quarter profit was 115.4 million dirhams ($31.43 million) according to Reuters calculations, down from 136 million dirhams in the same period last year, while full-year profit attributable to shareholders was at 452 million dirhams, it said in a statement on Saturday.

Analysts polled by Reuters had expected an average that Air Arabia post a fourth quarter profit of 106.80 million dirhams.

The Arab world’s largest listed airline will begin operations at its third hub in Egypt in the first half of 2010, it said.

Air Arabia carried 4.1 million passengers in 2009, up 14.2 percent from 3.6 million passengers last year, while the airline’s seat load factor stood at 80 percent.

Turnover in 2009 fell 4.5 percent to 2 billion dirhams, the firm said.

The company’s chief executive Adel Ali said in October he did not see yields improving until the beginning of the first quarter of 2010.

Air Arabia faces growing competition in the Gulf Arab region from rivals including Kuwait’s Jazeera Airways and Dubai-owned flydubai, but also from bigger carriers struggling to cope with a sharp drop in international passenger travel.

The airline, set up around six years ago, already has a hub flying from Morocco as it looks at diversify away from increased pressure in its home market. It has an order of 44 A320s from Airbus.

Source: business.maktoob.com