Financial year results: Liberalization of the visa rules earns Flydubai USD 8.6 million in profit

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Flydubai has announced USD 8.6 million profit in 2016 with a total revenue for the year hitting USD 1.37 billion for the 12- month period. The total revenue in its Full-Year Results shows an increase of 2.4 percent compared to the same period last year.

The stronger second half was driven by increased passenger numbers with a record number of 10.4 million passengers that reflected a 14.4 percent growth compared to the previous year.

Flydubai carried 28 per cent of all traffic between Dubai and the GCC and the Middle East. Passengers grew in Europe by 19 percent. The flight recorded 21 flights per week across 7 destinations. In Africa, passenger numbers from its 11 points grew by 3 per cent and contributed 12 percent of the total growth at Dubai air points.

Fuel costs were 25% of operating costs compared to 30.6% in the previous year, against a backdrop of lower fuel prices for the year, with legacy fuel hedges impacting only 21% of the volume for the full year 2016.

Ancillary revenue comprising of baggage, cargo and in-flight sales contributed 13.8% of revenue; dropping from 15.1% from the previous year.

Operational performance

Aircraft deliveries: 8 Next-Generation Boeing 737-800 aircraft joined the fleet in 2016 in support of network expansion. The average age of the fleet was 3 years 8.5 months.

Business Class: The growth in the number of flydubai’s Business Class passengers continued and saw the airline carry 2.4 times the number of passengers as in 2014. The Subcontinent saw the strongest demand for Business Class carrying more than double the number of passengers. This was followed by the Caucasus which grew by 88%, as a result of a liberalization of the visa rules, creating an increased demand from both inbound and outbound traffic flows. In addition, Business Class passengers grew by 38% in Europe and 24% in the GCC and Middle East.

Network expansion: During the course of the year, increased flight frequency on existing routes and a maturing in the performance of the 41 new routes launched in 2014 and 2015 saw ASKM grow by 9%.

The launch, on 29 November, of flights to the popular destination of Bangkok was the first route outside of the GCC to start operations with a double daily service. Across the network, flydubai reported the following passenger flows

“These results see flydubai report its fifth consecutive full-year of profitability. In 2012, our third year of operation, we carried 5.1 million passengers. This year, we have carried 10.4 million passengers demonstrating that flydubai continues to help change the way both business and leisure passengers’ travel around the region.” Said Sheikh Ahmed bin Saeed Al Maktoum, Chairman of flydubai

 

 

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Melissa Daniels
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