Air Arabia, the Middle East and North Africa’s first and largest low-cost carrier, reported record financial and operational results for the fiscal year ending December 31, 2025, according to a statement released Thursday by the Sharjah-based airline.
The carrier’s net profit, before tax, reached AED 1.8 billion (approximately $490 million USD) for the year, a 14% increase from AED 1.6 billion in 2024. Group revenue totaled AED 7.78 billion, a 15% increase compared to AED 6.76 billion the previous year. These results reach despite ongoing geopolitical tensions and inflationary pressures, according to the airline.
Air Arabia expanded its operational capacity throughout 2025, adding 30 novel routes across its hubs. This strategic expansion contributed to a 10% increase in operational capacity and a 16% rise in total passengers carried, reaching 21.8 million. The airline’s seat load factor – the percentage of occupied seats – increased by 4 percentage points to 85%, reflecting sustained demand and the efficiency of its business model.
The airline’s board of directors has recommended distributing 30% of the company’s capital as dividends to shareholders, equivalent to AED 0.30 per share. This proposal will be presented for shareholder approval at the upcoming annual general meeting.
Sheikh Abdullah bin Mohammed Al Thani, Chairman of Air Arabia, stated that 2025 marked the strongest financial and operational performance in the company’s history. He attributed the success to the implementation of an ambitious growth strategy and continued customer confidence. “We were able to achieve profitability while expanding our network, enhancing capacity, and improving operational efficiency across the Group, which confirms the robustness of the business model we follow and reflects the efficiency and excellence of our management team,” Sheikh Abdullah said.
Despite challenges including geopolitical tensions, inflation, and supply chain disruptions, the airline focused on enhancing operational efficiency and delivering exceptional value to customers, according to Sheikh Abdullah. This approach contributed to expanding the customer base and strengthening its presence in key markets.
In the fourth quarter, ending December 31, 2025, Air Arabia reported a net profit of AED 405 million, a 15% increase compared to AED 351 million for the same period in 2024. Revenue for the quarter rose 26% to AED 2.12 billion, driven by a 22% increase in passenger numbers, with the airline carrying over 5.7 million passengers. The seat load factor for the fourth quarter increased by 5 percentage points to 87%.
Air Arabia added nine new Airbus A320 aircraft to its fleet during 2025, including five A320neo aircraft as part of an existing order for 120 aircraft, and four A320ceo aircraft on long-term lease. As of December 31, 2025, the total fleet size reached 90 Airbus A320 and A321 aircraft across all operational hubs, excluding five aircraft leased for short-term periods to support peak season demand.
The airline’s network expanded to 219 destinations globally throughout 2025, operating from hubs in the United Arab Emirates, Morocco, Egypt, and Pakistan. Group capacity increased by 10% compared to the previous year.
Air Arabia maintains a strong liquidity position with AED 5.3 billion in cash and cash equivalents. The airline similarly retained its “Leader” category rating in the aviation sector according to the MSCI ESG ratings, achieving a score of “AA”. It also received a score of 39 from S&P Global, a 14-point increase from 2024.
The airline received five new Airbus A320neo aircraft, which offer up to a 20% reduction in fuel consumption and carbon dioxide emissions. Air Arabia continues to utilize its carbon emissions monitoring, reporting, and verification system and has published its financial disclosures related to climate change.
Air Arabia received its first rating from CDP on its strategy to reduce carbon dioxide emissions and its implementation mechanism, receiving an overall rating of “B-”.
Air Arabia was awarded “Best Low-Cost Airline of the Year” at the Aviation Business Middle East Awards 2025. It was also ranked among the “Top 20 Low-Cost Airlines for 2025” by AirlineRatings.com and included in Forbes Middle East’s “Top 100 Publicly Listed Companies in the Middle East for 2025,” ranking 38th globally for on-time performance and customer service, according to AirHelp. Adel Al Ali, Group CEO of Air Arabia, was named among the “150 Most Influential Arabs for 2025” by Arabian Business.
The airline’s joint venture in Pakistan, fly Jinnah, ranked second in terms of on-time performance by the Civil Aviation Authority of Pakistan.
Through its sustainability initiative, the “Ajyal الخير” program, Air Arabia continued to implement humanitarian and development initiatives in 2025. These included the establishment of a kidney treatment center in Egypt, a new medical clinic in Bangladesh, a sustainable water network project in Kyrgyzstan, and the support for the creation of four orphanages in Ethiopia.
Sheikh Abdullah bin Mohammed Al Thani expressed confidence in the company’s resilient business model and its ability to adapt to changing market conditions. He stated that the company will focus on implementing its growth strategy, expanding its global network, increasing capacity in high-demand markets, and enhancing operational efficiency and customer experience.
