SHARJAH, UAE / MENA Newswire / — Air Arabia reported a net profit of AED 278 million for the first quarter ended March 31, 2026, as regional airspace closures and temporary operational restrictions weighed on capacity during the period. The Sharjah based carrier said first quarter profit fell 22% from AED 355 million a year earlier, even as turnover rose 1% to AED 1.8 billion. The company said the quarter was affected by conflict in the region that disrupted operations and reduced available flying capacity.
Revenue held slightly above the year earlier level as Air Arabia carried 4.7 million passengers across its operating hubs during the quarter, compared with 4.9 million in the same period of 2025. Average seat load factor rose to 86% from 84%, indicating fuller aircraft despite lower passenger numbers overall. The combination of higher occupancy and modest revenue growth did not offset the effect of reduced capacity and operating disruption, leaving profit below the level recorded in the opening quarter of last year.
Air Arabia’s investor presentation showed operating profit fell to AED 302 million in the first quarter from AED 372.7 million a year earlier, while operating margin narrowed to 17% from 21%. The figures underline the extent to which the disruption hit earnings even as sales remained broadly stable. For the three months ended March 31, the carrier reported revenue of AED 1,800.4 million and net profit of AED 278.1 million, compared with revenue of AED 1,779.3 million and net profit of AED 355.4 million in the year earlier period.
Air Arabia revenue and traffic metrics
The carrier said the decline in quarterly profit was linked to the ongoing conflict in the region, which led to airspace closures and temporary operational restrictions. Those conditions reduced flying capacity in March and constrained parts of the network during the quarter. At the same time, the increase in seat load factor suggested demand remained firm on the services that continued to operate, allowing revenue to edge higher even as the number of passengers carried across all hubs moved lower from the previous year.
During the quarter, Air Arabia operated a fleet of 90 owned and leased Airbus A320 and A321 aircraft across hubs in the United Arab Emirates, Morocco, Egypt and Pakistan. The company said additional aircraft are scheduled for delivery during the year under its existing Airbus order book. In its fleet breakdown, Air Arabia listed 76 Airbus A320ceo aircraft, five A320neo aircraft, three A321ceo aircraft and six A321neo aircraft in service at the end of the first quarter.
Broader company context
The first quarter results follow a record 2025 for Air Arabia, when the airline reported pre tax net profit of AED 1.8 billion and revenue of AED 7.78 billion, with passenger numbers rising to 21.8 million. In March, shareholders approved a 30% cash dividend for the 2025 financial year, equivalent to 30 fils per share. That backdrop gives added context to the latest quarterly numbers, which show earnings pressure emerging after a year of record annual performance and continued network expansion.
For the latest quarter, the company’s reported figures point to a mixed operating picture. Revenue remained steady, seat load factor improved and the airline continued to run a 90 aircraft fleet across multiple hubs, but lower capacity and operational disruption cut into profit and margin. Air Arabia ended the quarter with passenger traffic below the prior year level and earnings below the first quarter of 2025, while maintaining turnover at about AED 1.8 billion despite the regional disruption.