The CEO of Air Arabia, Adel Ali, said that the rise in oil prices has the impact of various factors on the aviation sector in general, and in particular, Air Arabia constantly focuses on managing costs and hedging oil prices, and this trend has had satisfactory results in the past years and the company continues in its application.
Adel Ali added, in an interview with Al-Arabiya, today, Tuesday, that the company always hedges 50% of its oil needs, and therefore oil does not represent a burden on it in 2022, if prices are within reach.
Regarding the impact of the increase in oil prices on airline tickets, the CEO of Air Arabia said that the main impact on ticket prices is from supply, demand, competition and open markets in light of the pandemic, and it is not affected by oil prices unless it exceeds $ 100 a barrel or more, and those prices are currently far away, We expect oil to range between $90 and $100 a barrel.
Adel Ali indicated that an agreement was signed with the investment fund of the government of Armenia, and another agreement in Pakistan to establish Fly General, and work is currently underway to obtain an air operator certificate to start work, expecting to fly from the two countries in mid-2022.
He explained that the year 2022 is still witnessing a decline in the pandemic with the increasing demand for travel, while some restrictions on airports are still ongoing and awaiting their opening, expecting the opening of more than 30 destinations in 2022, especially from Abu Dhabi and Morocco.
Adel Ali ruled out separating any of the sectors or subsidiaries and offering them in the stock market now.
The quarterly profit of Air Arabia jumped more than 20 times to reach 467 million dirhams.
Annually, the company returned to achieve profits of 720 million dirhams, compared to losses of 190 million dirhams in 2020, which came much better than expectations of 340 million dirhams.
The company’s board of directors recommended distributing a cash dividend of 8.5% to shareholders.