Dubai – Mubasher: NBK Capital, the investment arm of the National Bank of Kuwait (NBK), has raised its fair value (FV) for Air Arabia by 4% to AED 2.05, from its previous FV of AED 1.92, and gave the recommendation ‘Buy’.

On Sunday, when the report was issued, the airline’s stock closed at AED 1.57 on the Dubai Financial Market (DFM).

Air Arabia’s fuel costs fell 9% year-on-year in Q2-15, the research firm noted, adding that it expects costs to continue to decline for the airline during the second half of the year on the back of falling oil prices.

The UAE-based carrier is projected to continue its positive performance in 2015 with revenues forecasted to rise by 39% year-on-year and profits to be high, NBK Capital said, adding that Air Arabia’s dividend distributions have amounted to 78% over the past three years.

Air Arabia recently reported a net profit of AED 237 million ($64.5 million) in H1-15, a decline from AED 247.67 million ($67.4 million) in the same period last year.