Air Arabia acquires additional 49% stake in Cozmo Travel for Dh237m

Sharjah's Air Arabia has increased its stake in the travel, tourism and cargo services firm Cozmo Travel in UAE from 51 per cent to 100 per cent.

The low-cost carrier said in its third-quarter financial report that it acquired additional 49 per cent in the travel and tourism company for Dh237 million.

"Changes in ownership (without a change of control) are accounted for as equity transactions and has been recorded under 'retained earnings'. As a result of this transaction, Dh86.64 million was adjusted against non-controlling interest holders and Dh150.35 million was recognized in retained earnings," said the carrier said in its third-quarter statement released on Monday.

It also own 100 per cent stake in Cozmo Travel which has operations in Qatar, Saudi Arabia, Kuwait, Bahrain and India.

Air Arabia's third-quarter net profits jumped 57 per cent to Dh471 million as against Dh300 million in the same period last year. Its turnover for the third quarter of 2019 increased by 12 per cent to Dh1.438 billion, compared to Dh1.282 billion in the corresponding period last year.

In October, the carrier had signed an agreement with Etihad Aviation Group to launch Air Arabia Abu Dhabi, the capital's first low-cost carrier. The airline will take a call on its 100-plus aircraft order in the fourth quarter of 2019 or early next year.

Listed on Dubai Financial Market, Air Arabia shares gained 2.11 per cent on Monday to close at Dh1.45. It was one of the most active stocks on the Dubai bourse as its counter traded over 7.1 million shares worth more than Dh10.2 million.

waheedabbas@khaleejtimes.com