CAPA Low-Cost Long-Haul Summit

Hamburg 2019

Air Arabia started its operations in October 2003 as the first low-cost airline in the MENA region.

We have since then:

• Grown to become the largest LCC operator in the MENA region.

• Carried over 90 million passenger so far.

• The Arab world largest listed airline with shares traded in the Dubai Financial Market.

• A group of diverse businesses worth over $4 billion.

• Amongst the world most profitable airlines.

Ranked 3rd airline in the world in terms of:

EBTIDARMargins

FixedCharges Liquidity Leverage Average

Fleet Age

NetMargins

Ranked 1st airline in the world in terms of:

Source: Aviation Week

Source: Airline Weekly

Adopted the multi-hub business model

Morocco

Casablanca Fez Marrakech Nador Tangier

Egypt

Alexandria Upper Egypt Sharm El Sheikh

UAE

Sharjah Ras Al Khaimah

Cairo

2019

6 leased Airbus A321 NEO/LR

Range: Up to 8 hrs

Future

54 owned Airbus A320

Range: Up to 5.5 hrs

Current

Fleet growth projection

Possible 100+ aircraft order

Before year end 2019

Fleet utilization

Block hours

Average weekly utilization

Currently serving 170 routes in 50 countries

Extending reach (6-8 hours) operation with A321 neo LR

Unlocking potential markets within 8hrs radius

Low-Cost Medium-Haul?

• Evolving our business model rather than changing it.

• Embarking on a new generation aircraft to open-up new

markets while maintaining a low-cost operations.

Never say never – the future is changing

• While low cost–long haul is yet to be proven successful; the economics of the

industry is constantly changing.

• Airline bankruptcies have increased in 2019 at the fastest ever rate, reaching 17

carriers.

• 2019 also seen the most profit warnings issued by airlines – conventional

airlines & LCC’s alike!

Why?

Who controls the state of the industry?

• The dual monopoly of aircraft manufacturers imposed on airline operators?

• Airports who constantly increase charges or keep on adding new ones?

• Regulations in many countries where taxation exceeds the airline fare charged to

customers?

• The few international organizations that speaks for the industry but don’t add

tangible value?

We need a closer look at the industry’s strength?

What can we do?

• Capitalize on the force of aviation which has a global economic impact.

• Take control of prioritizing the key drivers of a successful & sustainable

industry.

• Airlines should work together for a better industry and not against each

other.

Thank you