UAE's Air Arabia sees Mideast traffic growing

DUBAI (Reuters) - Air Arabia, the Middle East's only publicly listed carrier, said it expects regional passenger traffic to grow by an average 7.1 percent per year during the next eight years, faster than the global average.

Sharjah, United Arab Emirates-based Air Arabia, the region's largest low-cost carrier, said on Tuesday it would benefit from "strong air traffic growth projected in our target regions" and "highly favourable home and regional market dynamics."

The airline, which this year raised $700 million in an initial public offering, on Monday ordered 34 aircraft from Airbus, with options for 15 more, in a contract worth as much as $3.5 billion. These will replace the 11 aircraft it leases now.

Middle East cargo traffic should grow 5.3 percent per year during the decade to 2015, compared with 6 percent globally, the carrier said in a presentation that it will give to investors in New York during the next three days.

The presentation was posted on the Web site of the Dubai Financial Market, which is organising the meeting with 13 Dubai-listed companies.

Air Arabia carried 1.76 million passengers last year, and 1.96 million in the nine months to Sept. 30, with the Indian subcontinent its biggest market, followed by other Gulf Arab states, according to the presentation.

Shares of Air Arabia have almost doubled in value since they listed in July. The company started in 2003.