UAE-based budget carrier Air Arabia reported a 51% decline in first-half net profit to Dh374 million as the Middle East conflict disrupted flight operations and increased fuel costs. The airline faced lower capacity. This comes as airspace closures and temporary restrictions occurred during the six months ended on June 30, 2026.
Revenue dropped 1% year-on-year to Dh3.48 billion, compared with Dh3.52 billion in the first half of 2025. The results highlight the growing financial pressure on airlines operating across the region as geopolitical disruptions affect schedules, capacity and costs.
As reported by Air Arabia, “A net profit of Dh96 million, down 77% from the same quarter last year. Revenue fell 3% to Dh1.68 billion. The airline carried more than 3.9 million passengers during the quarter, down 23% year-on-year, while its average seat load factor stood at 81%.”
Despite the challenging environment, Air Arabia continued to expand. The carrier added six aircraft during the first half, taking its fleet to 96 Airbus A320 and A321 aircraft.
It also launched five new routes across its hubs in the UAE, Morocco, Egypt and Pakistan. The expansion highlights the airline’s efforts to preserve long-term growth while managing short-term operational disruption.
Air Arabia’s results reflect a broader challenge for the aviation sector. Conflict-related airspace closures, longer routes, capacity restrictions and higher fuel prices have affected carriers operating across and beyond the Middle East.
Air Arabia Chairman Sheikh Abdullah Bin Mohammad Al Thani said the company remained focused on network connectivity, cost control and operational efficiency. The airline expects its business model and financial position to support recovery as market conditions improve.