- 1 -

Investor Presentation

FY 2010

Air Arabia PJSC

- 2 -

Disclaimer

Information contained in this presentation is subject to change without notice, its accuracy is not guaranteed

and it may not contain all material information concerning the company. Neither we nor our advisors make

any representation regarding, and assumes no responsibility or liability for, the accuracy or completeness of,

or any errors or omissions in, any information contained herein.

In addition, the information contains projections and forward-looking statements that reflect the company’s

current views with respect to future events and financial performance. These views are based on current

assumptions which are subject to various risks and which may change over time. No assurance can be given

that future events will occur, that projections will be achieved, or that the company’s assumptions are correct.

Actual results may differ materially from those projected.

This presentation is strictly not to be distributed without the explicit consent of

Company management under any circumstance.

- 3 -

Highlights

• Air Arabia is a National Carrier of UAE based in Sharjah, and founded by Sharjah Government in 2003.

• Air Arabia is the first and largest low-cost carrier in MENA.

• 44 A 320 Aircraft on order

� RPK - 9.16 Billion (2009 – 8.47 Billion)

� ASK - 11.04 Billion (2009 – 10.51 Billion).

� Passengers carried – 4.46m (2009 – 4.07 m)

� Current fleet: 25

� Sharjah Base 19

� Casablanca Base 4

� Alexandria Base 2

� Destinations: 65

� Sharjah Base 47

� Casablanca Base 13

� Alexandria Base 5

(

Recent Awards

• Best Managed Company in the Middle East by Euro-Money

• ‘Middle East’s leading low-cost airline’ by World Travel Awards

• Sharjah Economic Excellence Gold Category Award.

• World record of Airbus A320 Utilization over 6 years. (30,000 hours)

• LCC of the year by Doha Aviation Summit

Air Arabia Group Network

- 5 -

Air Arabia Maroc Network

- 6 -

Performance:High Utilization & High Reliability

Source: Airbus

YTD we have achieved a flying time per aircraft of over 14 hours per day with more than 99% reliability

�Consistently Achieved the Highest Level of Aircraft Utilization in the A320

Family

- 7 -

Passengers and Aircraft

Total Passengers Geographic Distribution

Fleet SizeNumber of Destinations

* Air Arabia Group

515

2332

3744

5965

0

20

40

60

80

2003 2004 2005 2006 2007 2008 2009 2010

35

811

16

21

25

0

5

10

15

20

25

30

2004 2005 2006 2007 2008 2009 2010

5471,133

1,763

2,700

3,5614,066

4,456

68% 79% 80% 86% 85% 80% 83%-

1,000

2,000

3,000

4,000

5,000

6,000

2004 2005 2006 2007 2008 2009 2010

Pass

engers ('000s)

- 8 -

Historical Financial Performance (Group) FY 2010

Revenues Gross Profit

EBITDAR Net Profit

192411

749

1,283

2,066 1,972 2,080

-

500

1,000

1,500

2,000

2,500

2004 2005 2006 2007 2008 2009 2010

Revenues (A

ED 000)

2465

130

318

394358

312

19.1%25.9%

17.4%15.8%

12.5%15.0%

18.2%

0

100

200

300

400

500

2004 2005 2006 2007 2008 2009 2010Gross Profit (U

SD in M

M)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

% M

argin

Gross profit Margin

2984

182

421

741 742

59037.6%35.9%34.4%

24.3%20.4%

15.1%

28.4%

0

200

400

600

800

2004 2005 2006 2007 2008 2009 2010

EBIT

DAR (AED 000)

0.0%

10.0%

20.0%

30.0%

40.0%% M

arg

in

EBITDAR EBITDAR Margin

31

101

376

510452

310

25.0%

29.3%

13.5%7.6%

22.9%

14.9%

0

100

200

300

400

500

600

2005 2006 2007 2008 2009 2010

Net Profit (A

ED (M

M)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

% M

arg

in

Net Profit Net Margin

Comparison Q4 2009 to Q4 2010

2010 2009 Variance

Revenue AED 545m AED 503m +42m

Direct costs AED 442m AED 408m +34m

Selling and Marketing AED 8m AED 16m -8m

G+A AED 20m AED 17m +3m

Operating Profit AED 75m AED 62m +13m

Finance deposits AED -2m AED 52m -54m

Net Profit AED 73m AED 114m -41m

- 10 -

Revenue vs Cost per passengerFY 2010

6% Decrease

Revenue/Passenger – FY 2009 Vs. FY 2010

Cost/Passenger – FY 2009 Vs. FY 2010

6% Increase 2% Increase

Cost/Passenger – Excluding fuel

375

397

Cost/Passenger (AED)

2009 2010

235

239

Cost/ Passenger (AED)

2009 2010

523

493

Revenue/Passenger (AED)

2009 2010

- 11 -

Operating Statistics (Airline)

2004 2005 2006 2007 2008 2009 2010

Number of Aircraft 3 5 8 11 16 21 25

Average Aircraft 3.0 4.9 6.0 9.5 14.5 17 23

Destinations 15 23 32 37 44 45 66

Number of Passengers in Millions 0.6 1.1 1.7 2.7 3.6 4.1 4.5

RPK (Billions) 1.2 2.5 3.7 5.0 7.1 8.5 9.2

ASK (Billions) 1.8 3.2 4.7 5.8 8.3 10.5 11.0

Average Load Factor 68% 79% 80% 86% 85% 80% 83%

Revenue / Passenger 318.2 354.7 425.0 453.6 546 523 493

Cost / Passenger 348.9 345.3 382.1 351.6 460 375 397

Cost / Passenger (Ex-Fuel) 240.2 220.7 248.0 207.9 229 235 239

EBITDAR Margin 13.9% 20.4% 24.9% 34.4% 36% 38% 28%

Joint venture revenues growing

2008 2009 2010

SAS 60m 82m 89m

Alpha Flight Catering 25m 27m 30m

SATA 6m 11m N/A

Cozmo 7m

Corporate GovernanceAir Arabia applies strict corporate governance regulations, in

compliance with ESCA resolution number 518 of 2009.

• Air Arabia has split the roles of Chairman and CEO.

• Air Arabia’s board consists mainly of Independent Directors, with

representation of non-executive, and executive members.

• Air Arabia’s board of directors has formed 2 main committees:• Audit Committee

• Remuneration Committee

• Air Arabia has set a Corporate Governance Manual that is strictly

adhered to, and stipulates among other practices the following

policies:• Shareholder Communication Statement

• Code of Ethics and Conduct

• Share Dealing policy

• Whistle blowing policy

• Corporate Social & Environmental Policy

• Dividend Policy

• Investor Relations Contact:

– investorrelations@airarabia.com

– +971-6-5088977

– www.airarabia.com