Page 276 - SHARJAH AIRPORT PR REPORT - OCTOBER 2023

10/27/23, 9:58 AM Air Arabia upbeat about growth amid shift to Abu Dhabi's new airport terminal
“Rising fuel costs and inflation will potentially impact consumer spending and force LCCs to increase their
fares. However, the inherent cost efficiency of the LCC model helps in mitigating some of these pressures,” Mr
Bauer said.

“A global economic slowdown and uncertainty could result in reduced travel demand. LCCs could potentially be
more resilient due to their lower cost structures and focus on short to medium-haul routes.”
Budget airlines in the region include Flydubai, Wizz Air Abu Dhabi, Kuwait's Jazeera Airways, Saudi Arabia's
Flynas and Flyadeal.
Air Arabia can continue to capitalise on the UAE's growth as a global travel and tourism hub, tap into Africa's
emerging travel market through its Egypt and Morocco hubs and seize growth opportunities in the underserved
markets of its Pakistan and Armenia hubs, Mr Bauer said.

“Ongoing geopolitical tensions in the Middle East and beyond, competition and regulatory changes will
continue to pose challenges, but also present opportunities for strategic partnerships and expansion,” he said.

“Air Arabia’s proven track record, strategic hub locations and efficient operations place it in a strong position to
navigate these challenges and continue to thrive in the low-cost carrier segment.”
Airlines are affected by oil price fluctuations, currency swings, extreme weather, conflicts and supply chain
bottlenecks.

They are also recovering from coronavirus-induced border closures that forced airlines to ground their fleets,
driving the industry to the brink of collapse.

Mr Ali said it had “been hard, as this industry is, but every moment of it has been enjoyable and satisfactory” .

Reflecting on his personal journey with the airline for two decades, Mr Ali said: “We've had challenges but I'm
very satisfied 20 years later to sit here and say 'it has been good'.”

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