Sharjah’s low-cost carrier Air Arabia has announced a net profit of AED85m ($23m) in the first quarter of 2015.

This is a 13 per cent increase on profits in the same quarter of 2014, which were AED75m.

Quarterly turnover also increased by 7 per cent year-on-year to AED886m.

Passenger numbers rose 10 per cent from 1.6 million during the first quarter of 2014 to 1.8 million in the first quarter of 2015. This brought the average seat occupancy rate to 81 per cent.

The announcement follows a 30 per cent increase in profits in 2014.

Air Arabia is expanding its route strategy, and began flights to eight new destinations in the Middle East, Asia and Europe in the first quarter of 2015.

“We are delighted to record another quarter of strong performance across our operations, with Air Arabia maintaining its steady, long-term growth trajectory,” said Sheikh Abdullah bin Mohammed al-Thani, chairman of Air Arabia. “The increase in profits coupled with continuous growth in seat [occupancy] and our ever-expanding route strategy is a reflection of Air Arabia’s sustainable business model.”

However, he signalled that fluctuating oil prices were a concern. Most carriers have benefited from lower fuel prices.

Air Arabia’s share price fell 1.9 per cent on the Dubai Financial Market on Monday 11 May.