Air Arabia seen higher as quarterly earnings rise

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Shares in Dubai's Air Arabia may gain investor interest after the budget carrier posted a sharp rise in first-quarter net profit.

The Sharjah-based airline said it made a net profit of Dh59 million in the quarter.

Shares in the carrier slipped 0.9 percent on Monday ahead of the results but are up 30.5 percent year-to-date mainly in anticipation of improved results.

“Air Arabia was in an overweight position from the beginning of the year and the results are a clear example of growth in yield and the growth potential for medium-term,” says Reda Gomaa, portfolio manager at Mashreq bank in Dubai.

“Their margins improved on a quarter-on-quarter basis, which beats expectations. It's a good stock to have in your portfolio despite the early-year rally.”

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