Air Arabia PJSC (AIRARABIA.AE) stock analysis

In our weekly check, Air Arabia PJSC is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 3, red flags: 4.

About Air Arabia PJSC

Air Arabia PJSC is an Industrials company (Airlines, Airports & Air Services), listed on DFM as AIRARABIA.AE.

What our checks show for AIRARABIA.AE

Red flags

• The net margin fell by 6 points over 5 years, to 16.7%: the company keeps less of each sale as profit.
• The gross margin fell by 10 points, to 17.8%: costs are rising faster than prices.
• The dividend takes 107% of profit: little cushion if profit falls.
• The stock has fallen as much as 97% from a peak. Would you have held through that?

Warning signs

• The price swings a lot: 35.4% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 7.9%.

Strengths

• Operating profit covers interest 11.5 times over.
• Operating cash flow is 2.4x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 13.4% a year over the next years.
• Free cash flow is 10.4% of revenue: cash for dividends, buybacks or growth.
• Beta 0.31: the stock usually moves less than the market.
• Actively traded: about 3.8 million shares a day.

Next earnings report: 2026-11-16

Similar companies

C6L.SI · IAG.MC · LUV · RYAAY · UAL · AIA.NZ

Questions

What grade does Air Arabia PJSC (AIRARABIA.AE) have?

In our weekly check, Air Arabia PJSC is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 3, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of AIRARABIA.AE stock?

This week's biggest flags for Air Arabia PJSC: Margins falling, Gross margin falling, Dividend stretched. In total 7 of 25 checks show a warning or a red flag.

What does Air Arabia PJSC do?

Air Arabia PJSC is an Industrials company (Airlines, Airports & Air Services), listed on DFM as AIRARABIA.AE.

When does Air Arabia PJSC report earnings next?

The next earnings report is expected on 2026-11-16. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

Open the full analysis