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Dubai: Air Arabia said Saturday its first-quarter net profit increased by 32 per cent over the same period last year as the Middle East's largest budget airline saw its passenger numbers go up by 26 per cent, defying a general downturn in the aviation sector.

The airline, which is based in Sharjah and listed on the Dubai Financial Market, achieved a net profit of Dh103 million for the first three months of 2009, compared with Dh78 million during the same period of 2008.

It recorded a sales turnover of Dh463 million for the quarter, an increase of 21 per cent.

Air Arabia carried 951,000 passengers from January to March compared with 757,000 passengers during the same period in 2008.

Average seat load factor, or the ratio of seats filled, was 81 per cent.

Adel Ali, chief executive officer of Air Arabia, said in a statement the global economic crisis has affected the travel habits of both business and leisure passengers and his low-cost model stands to gain from it. He said "travellers everywhere increasingly see the appeal of low-cost services."

Speaking during a seminar at Arabian Travel Market last week he said that yields are coming under pressure but passenger numbers are healthy.

Air Arabia recently launched Air Arabia Maroc, a new company operating from Casablanca that will expand the carrier's reach to Western European destinations.

Air Arabia Maroc began services to London's Stansted Airport on May 6 and takes off to Marseilles and Brussels today. It will start flying to Lyon on May 14 and to Paris from May 16.

Gulf-based carriers continue to remain aggressive in expanding their operations.

"While Air Arabia is not insulated from the fallout of the global financial crisis, we are extremely pleased to have been able to continue our own positive momentum in the first quarter of 2009," Ali said.
 
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