| Revenue increased by 7% on a YoY basis but missed our estimate |
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| Air Arabia, continuing with its growth momentum, registered a growth of 7% on a YoY basis to AED 1392.8mn, missing our estimate of AED 1672mn as growth in passenger numbers though exceeded pre-pandemic numbers, were below estimated as new variants of COVID kept affecting airlines and airport returning to normalcy. | ||||||||||
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| Gross and operating profits largely in line with our estimates |
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| On the back of an increase in revenue and the most efficient utilization of the company’s assets, it reported gross and operating profit of AED 420.6mn and AED 295.1mn, respectively exceeding our gross profit estimate by 6% while coming close to our operational profit estimate of AED 297mn. | ||||||||||
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| Net profit flattish on QoQ basis but exceeds our estimate |
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| The company reported a net profit for the quarter at AED 414.8mn which is flattish when compared with the previous quarter’s net profit of AED 416mn but exceeded our estimate by 26%.as turnover increased amid a rise in passengers from its seven hubs during the quarter. | ||||||||||
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| Maintain target price |
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| The solid results delivered for the full year are a reflection of cost control measures and increased demand for affordable air travel. Furthermore, the aviation industry is fast returning to normalcy following the pandemic fear subsiding. However, downside risk to valuation remains a geo-political and economic challenge. We maintain our TP not so encouraging quarterly results. | ||||||||||