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Despite rising fuel costs, Air Arabia is on track to achieve a profitable 2012, its chief executive said as the airline posted an 11% increase in its first-quarter net profit to $13.39 million, up from $12.03 million for the corresponding quarter in 2011.

The Sharjah-based budget carrier said the jump was achieved on the back of a 7% increase in passengers to 1.23 million compared to 1.15 million it served in the same period last year.

It is noted that 25% of Air Arabia's fuel is hedged for 2012 and that fuel accounts for over 40% of the airline's overall costs.

The first quarter of this year saw Air Arabia posting a turnover of $169.06 million, a 21% increase over $139.66 million in the same period of 2011, the carrier stated, adding that the average load factor stood at 82%.

Source: Gulf News