EL7.AI
StocksMedium•13 November 2026•
4 min read

Air Arabia’s Q3 Profit Falls 42% to AED 383 Million Despite Revenue Growth

Key Facts

1Third-quarter net profit was AED 383 million, down 42%, while revenue rose 10% to AED 2.31 billion.
2The company carried more than 5.7 million passengers in the third quarter, down 3%, and recorded an 82% seat load factor.
3Nine-month net profit was AED 757 million, down 47%, and revenue rose 2% to AED 5.81 billion.
4The group added 14 routes and 10 aircraft in the nine months, taking its network to 224 routes and its fleet to 100 aircraft.

Air Arabia said net profit reached AED 383 million in the third quarter ended September 30, 2026, down 42% year on year, despite a 10% rise in revenue to AED 2.31 billion. The results put income growth against a decline in profitability over the same period. The company said the ongoing regional conflict weighed on the operating environment and increased costs, alongside fuel price volatility and continuing supply chain constraints. The chairman added that revenue growth and demand for the company’s product supported profit, while operating pressures limited their impact. In a company statement, he said the conflict “led to higher costs, fuel price volatility and ongoing supply chain constraints, which in turn affected profitability.”

The company carried more than 5.7 million passengers across its hubs during the quarter, down 3% from the same period last year. The average seat load factor was 82%. These figures came alongside higher quarterly revenue, highlighting the divergence between revenue and passenger numbers during the period. The company said demand for its product continued to support profitability, while the stated strength of demand did not prevent a year-on-year decline in passenger numbers. The available disclosure did not detail the effect of passenger traffic or seat load factor on quarterly revenue.

For the nine months ended September 30, 2026, net profit was AED 757 million, down 47% year on year, while revenue rose 2% to AED 5.81 billion, compared with AED 5.71 billion in the corresponding period of 2025. The company carried 14.4 million passengers across its hubs in the nine months, down 10% year on year, and recorded an 83% seat load factor. The results for the extended period show continued pressure on profitability alongside limited revenue growth, while the decline in passenger traffic over the nine months was greater than the drop recorded in the third quarter alone. The chairman said a focus on operational efficiency, cost control and network optimization enabled the group to deliver financial and operational performance during the period despite economic challenges. He described these priorities as “operational efficiency, cost discipline and network optimization.”

First-half results recorded net profit of AED 374 million, down 51% year on year, as revenue fell 1% to AED 3.48 billion from AED 3.52 billion in the corresponding period of 2025. The chairman said at the time that airspace disruption, operational restrictions, capacity cuts and higher fuel prices had hurt performance. In its third-quarter results, the company described regional conflict, fuel volatility and supply chain constraints as factors that affected profitability. These comments reflect the company’s continued linking of profit pressures to operating conditions and costs across both periods. At the same time, it said revenue growth and demand for its product helped support third-quarter profit.

On expansion, the group added 14 routes in the first nine months of 2026, bringing its network to 224 routes. It also added 10 aircraft, taking its fleet to 100 Airbus A320 and A321 aircraft, including owned and leased planes. The company began operations from its new hub at King Fahd International Airport in Dammam on September 20, launching domestic flights to Jeddah, Medina and Riyadh. The company links network optimization with operational efficiency in its account of the period’s performance, while the Dammam hub expands its operational presence in Saudi Arabia. It said it would continue investing in its fleet and expanding its network where it sees sustainable demand.

Before the end of 2026, four additional aircraft were scheduled to join the company’s fleet, according to its statement. The expansion follows the addition of 10 aircraft in the first nine months of the year, with the fleet standing at 100 aircraft as of September 30. The network also expanded to 224 routes, with 14 new routes launched over the same period. The company said it would continue investing in its fleet and expanding its network where it sees sustainable demand. The addition of the four aircraft remains the next operational step identified in the disclosure as part of the company’s plan before year-end.