Earnings/Share

Mar.
Jun.
Sept.
Dec.
Year
P/E Ratio
2011A
0.06
0.06
0.06
0.06
0.06
10.16
2012A
0.06
0.06
0.09
0.09
0.09
9.29
2013A
0.09
0.09
0.09
0.09
0.09
17.19
2014E
0.09
0.11
0.12
0.12
0.12
9.82

Air Arabia the first low cost carrier: Airarabia has the distinction of being the first low cost carrier of the MENA region. The company currently caters to 85 destination across MENA, Indian subcontinent, Central Asia and Europe, with its fleet of 32 owned and leased Airbus A320s. Arabia has followed the basic model of low frills, point to point services of an LCC (Low Cost Carrier) closely, adjusting it according to the needs and demands of the market. (Airarabia.com, 2014)
Air Arabia went up in 2013: There has been a 12% increase in net profit for the fourth quarter of 2013, from 84 million in 2012 to 94 million in 2012. For the full year 2013, the airline reported a net profit for 435 million, a 2% increase from compared to 2012. (Anon, 2014)
Improving IATA outlook on Middle East: IATA has updated it estimate for incomes on the once again of higher air travel volumes and enhanced development in airship cargo. As indicated by IATA expecting that aerial shuttles from the Middle East are relied upon to deliver the most noteworthy edges and outright benefits. As indicated by the information issued by IATA for April-2013, Middle East at the end of the day demonstrated the most elevated development as RPK (income traveler kilometer) demonstrated a development of 10% Y/Y, where as PLF (traveler burden component) at 76.9% was underneath industry normal, which we accept will enhance the over of the higher entrance desire.
Margin Stability through fuel hedging and diluting revenue: The organization is looking to balance out and enhance its productivity by differentiating its income streams. In 2012, different administrations like stuff taking care of, Cargo, Catering, flight taking care of and so forth helped around 10% to the aggregate incomes, though edges from other administration remained at 33% as comapred to 12% from carriers business. The organization is further looking to enhance the offer of other income to the top line with a specific end goal to enhance gainfulness. The organization is further including control the expense side by supporting fuel cost to keep its edges stable. (Aljazeera capital,2013)
Fleet size to grow to more than 50 planes: Air Arabia is focusing to attain an armada size of 50 airplanes before the end of 2016, setting it up to cater give or take 8.4mn travelers before the end of 2016. With higher traveler inflow Air Arabia has additionally demonstrated a change in its RPK (income traveler kilometer), from SAR 1.2bn to SAR 10.8bn, we further anticipate that the RPK will enhance to SAR 17.1bn before the end of 2016.

Air Arabia is the first and biggest ease bearer to work in the Middle East and North Africa with operations starting in October 2003. The UAE Ministry of Economy affirmed in 2007 the transformation of Air Arabia LLC to Air Arabia PJSC (a public joint stock company), in accordance with the satisfaction of all lawful necessities. Exchanged the Dubai Financial business sector, it offers air travel at low charges, and sets the most astounding measures for security and reliability.

With its fundamental center spotted in the Sharjah International Airport, it has made working centers at two different bases – Egypt and Morocco. In 2011 the airline reported a solid 6% development in its traveler numbers and at present operates in excess of 65 destinations in 32 nations, spreading its wings to locales covering: Middle East, Indian subcontinent, South and Central Asia, Africa, Levant, CIS nations and Europe. The airline has a dream to be the main plan air transport regarding Profit edge, Innovation, Reputation and Operational Excellence.

The carrier kept up its reality breaking record for the fifth successive year in 2011- when Airbus recompensed Air Arabia the A320 Family Operational