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Air Arabia witnesses record decline in profit amid COVID-19

Syed Umarullah HussainiWeb Editor

15th May, 2020. 11:00 am
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Air Arabia

Budget carrier of United Arab Emirates (UAE) has witnessed a 45 percent decline in first quarter profit to $19.3 million from $34.87 million.

The carrier has blamed the novel coronavirus pandemic that has obliterated the travel demand, thus resulted in decline. Media reports said that revenues fell by 12 percent to $2455 million during the three months to March.

According to the statement the by airline more than 2.4 million passengers flew with Air Arabia between January and March across the carrier’s four hubs, a 14 percent lower than the number of passengers carried in the first quarter of last year.

Sheikh Abdullah Bin Mohamed Al-Thani, the chairman of Air Arabia said “The impact of COVID-19 pandemic on the global aviation, which materialized in airport closures, travel restrictions and low travel demand, has affected the overall performance of the quarter,”

“Since the start of the COVID-19 pandemic, we have reacted quickly and took all possible measures to protect our passengers and crew while ensuring we continue to fly safely where we can.” “Additionally, the management team has taken a series of business decisions to control our fixed and running costs during this period while supporting our business continuity.”

Earlier a business study has revealed that the travel and tourism industry around the globe will face the fifty percent shrink amid the coronavirus outbreak. Many businesses in the travel and tourism industry are likely to find themselves in jeopardy.  Governments and health officials have warned the public to avoid boarding cruise ships and long flights. Major events like conferences, trade shows and the Olympics have been canceled or postponed. As a result, many businesses in the travel and tourism industry are likely to find themselves in jeopardy.

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