Air Arabia Rating Updated to Hold as FAB Notes Q2 Earnings

06:23 AM EDT, 08/20/2026 (MT Newswires) -- FAB Securities revised its investment rating on Air Arabia (DFM:AIRARABIA) as it took note of the Dubai-listed airline's second-quarter earnings. "We revised our rating on AIRARABIA from REDUCE to HOLD with an unchanged target price of AED 5.10. AIRARABIA reported a decline in net profit in 2Q26, primarily impacted by the regional conflict, which resulted in airspace closures, temporary operational restrictions, reduced operating capacity, and record-high fuel prices," analysts said Thursday. "Despite the challenging operating environment, AIRARABIA remains vigilant and agile in navigating rapidly changing and uncertain conditions, while maintaining network connectivity and operational efficiency through disciplined cost management and operational adjustments." During the three-month period, the company's attributable net profit fell to 88 million Emirati dirhams, which missed FAB's estimate of 275 million dirhams. Revenue also decreased year over year to 1.69 billion dirhams, compared with the 1.83 billion-dirham forecast of the research firm. "The Company remains confident in the strength of the local and regional economies it serves and, in its ability, to navigate the evolving operating environment as conditions continue to improve, supported by its robust business model, disciplined financial approach and continued demand for its value-driven product," analysts added.