Air Arabia only went public in 2007 so there is not much history to go on:
March 2008:- Air-Arabia did not pay a dividend
March 2009:- Following the AGM (23/03/2009) Air Arabia payed a dividend of 10% based on a par value of 1 AED per share.
If there is a dividend this year (It is reasonable to expect a dividend) it will be announced at the end of March with investors being paid April / May.
The directors propose that a dividend of AED 466,670,000, AED 10 fils per share (2008: AED 466,670,000, AED 10 fils per share) will be paid to the Shareholders in 2010. This dividend is subject to approval by the Shareholders at the Annual General Meeting and has not been included as a liability in these consolidated financial statements.
I do not know the intention of the proposed dividend. It may not fit into their business plan because low cost carrier business is about cash flows and they need to expand their routes to be able to have healthy cash flow. They will be able to pay dividend when the company has reached the saturation point which i do not think that's the case.
Anyway, as shareholder, it is good to get something in return. I just hope it's not at the expense of future earnings.
I do not know the intention of the proposed dividend. It may not fit into their business plan because ...
Well their cash position on their balance sheet is solid. I guess that answers the question about their ability to pay the dividend. Also its a zero debt company...
Proposal subject to ratification at AGM to be held on March 18, 2010
Sharjah, UAE: Following a meeting today of the Board of Directors of Air Arabia (PJSC) (AIRARABIA), the Middle East and North Africa’s first and largest low-cost carrier, the company announced that the Board has proposed a cash dividend of 10 per cent for 2009. This proposal is subject to ratification at the company’s upcoming Annual General Meeting, which will be held on March 18, 2010, in Sharjah, UAE.
This announcement follows the recent release of Air Arabia’s financial results for the 12 months ending December 31, 2009. For the full year, the carrier demonstrated continued profitability and very high levels of efficiency during an enormously challenging period for airlines worldwide.
Ranked first on the Top Performing Companies chart as the best low-cost carrier globally in a study conducted in 2009 by Aviation Week magazine, Air Arabia currently serves 60 destinations across the world from its hubs in Sharjah and Casablanca. The region’s first and largest low-cost carrier has also been named "Low-Cost Carrier of the Year" by a number of leading aviation bodies.
Last year, Air Arabia announced the signing of a joint venture agreement with the Travco Group to launch a new low-cost carrier based in Egypt, serving the Europe, Middle East and Africa markets and representing the carrier’s third hub after the UAE and Morocco. Operations at the third hub in Egypt are anticipated to begin in the first half of 2010.
In the next few months with AA expansion we will see more foreign investment and the stock will not be a defensive stock.
My guess by May-june we could see 1.50 ( provided no more surprises in Dubai ) and close to 2.00 by early 2011
Who would not invest for a garanteed 10% min ? especialy these days.
I expected that their operations in Morocco's hub will start reflecting on the profits of 3rd and 4th quarters of 2009, but appearantly not.
Locally, I think that their profits will continue to drop in year 2010 (assuming that OIL is stablizing between $70 & 80$, of not more). If you remember, Q1 2009 profts were higher by more than 30% of Q1 2008 profits, however, revenue of Q1 2009 was less than the same of Q1 2008. It was cost that went down drastically due to OIL being at floor level during that time.
Another thing, are there any news on new planes deliveries? I am hardly hearing any.
10 per cent cash dividend approved at Air Arabia Annual General Meeting
Assembly approves report of auditors for 2009 financial year,
Board of Directors report and company annual accounts
Sharjah: Following the conclusion of its third Annual General Meeting (AGM), which was held today in Sharjah, the Board of Directors of Air Arabia (AIRARABIA) announced that the assembly approved the distribution of a cash dividend of 10 per cent of the company’s share capital.
During the Annual General Meeting, the assembly approved the report of the company’s auditors for the financial year ending December 31, 2009. The assembly also approved the balance sheet and profit and loss accounts of the company for the same period.
The first and largest low-cost carrier in the Middle East and North Africa, Air Arabia’s net profit for the 12 months ending December 31, 2009, stood at AED 452 million, sustaining 2008 strong performance of AED 454 million (excluding exceptional items). For the full-year 2009, the company registered a turnover of AED 2 billion, decline of 4.5 per cent from AED 2.066 billion recorded in 2008.
The airline served 4.1 million passengers in 2009, an increase of 14.2 per cent compared to 3.6 million passengers in 2008. In the 12 months ending December 31, 2009, Air Arabia’s average seat load factor – or passengers carried as a percentage of available seats – stood at an extremely impressive 80 per cent.
Finally, the assembly discharged the directors and auditors of the company from liability for the financial year ending December 31, 2009, and appointed auditors for the company for the next fiscal year in order to fix their remuneration.
“We are glad to share Air Arabia’s success with our shareholders by distributing a 10 per cent cash dividend of the company’s share capital for the second consecutive year,” said Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia. “Last year represented serious challenges to the global aviation sector and led to the industry’s highest loss ever. With the pressure on yields increasing significantly due to continuous overcapacity and volatile oil prices associated with the world’s financial crisis, the year 2010 remains uncertain.
“In 2010, Air Arabia will continue to focus on its efficient low cost operations while utilising its assets as well as providing our customers with the most competitive fares, more destinations and best value for money services.”
Ranked first on the Top Performing Companies chart as the best low-cost carrier globally in a study conducted in 2009 by Aviation Week magazine, Air Arabia currently serves 60 destinations across the world from its hubs in Sharjah and Casablanca. The region’s first and largest low-cost carrier has also been named "Low-Cost Carrier of the Year" by a number of leading aviation bodies.
Last year, Air Arabia announced the signing of a joint venture agreement with the Travco Group to launch a new low-cost carrier based in Egypt, serving the Europe, Middle East and Africa markets and representing the carrier’s third hub after the UAE and Morocco. Operations at the third hub in Egypt are anticipated to begin in the second half of 2010.
Is it possible to know what is the date of holding the shares where we can get the dividend? I hope my question is making sense, and I'll try to rephrase it with an example:
The shareholders who have X no. of shares on ' date ' will get the dividend. What is the effective date?
Locally, I think that their profits will continue to drop in year 2010 (assuming that OIL is stablizing ...
In the last 2 months lots of AA reps are visiting Turkey, something coocking there and expect some kind of an announcement by AA soon.
OIL has nothing to do as most airlines are charging this back to customers.
They have to have a network and they are trying hard and fast, just wait the defencive stock might shoot up.
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