In its statement to the Dubai Financial Market (DFM), Air Arabia reported its financial results for Q2-14, recording a net profit of AED 169 million, registering a 139% surge YoY, surpassing a market consensus of AED 128 million by 32%.

The bottom line came in beating our expectations of AED 99 million by 71%, mainly due to one-offs of AED 12 million gain on disposal of available-for-sale investments, added to unrealised gain of AED 53 million on fuel derivatives, Mubasher Trade noted, commenting on Air Arabia’s financials, adding that by adjusting net income to exclude the non-recurring profits, earnings should have reached AED 104 million, only 5% above our expectations.

Moreover, Air Arabia posted revenues of AED 915 million, an increase by 15% YoY, in line with both; our expectations of AED 903 million and consensus revenues of AED 912 million, Mubasher Trade added. As expected, growth is traced back to an increased number of passengers (up 8% YoY to 1.699 million), a growing fleet, the newly added destinations, and better aircraft utilisation due to starting operations from Ras Al Khaimah airport on 6 May, offering direct services to seven cities, including Jeddah in Saudi Arabia; Cairo in Egypt; Muscat in Oman; Islamabad, Lahore and Peshawar in Pakistan; and Dhaka in Bangladesh.