Profits rise at low-cost carrier flydubai

Profits rise at low-cost carrier flydubai

flydubai has today reported a profit of AED31.6 million (US$ 8.6 million for financial 2016.

The low-cost carrier reported total revenue of AED5 billion (US$ 1.37 billion) an increase of 2.4 per cent compared to the same period last year.

The stronger second half, driven by increased passenger numbers, was impacted by downward pressure on yield leading to lower overall revenue growth reflecting a continuation of the same adverse factors reported in the first half.

Ahmed bin Saeed Al Maktoum, chairman of flydubai, said: “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.

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“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.

“An established tourism destination and global centre for business together with the UAE’s geographic location has supported the need for increased connectivity.”

EBITDAR at flydubai was healthy at 21.1 per cent of revenue; an improvement from the previous year’s figure of 20.5 per cent.

The closing cash and cash equivalents position, including pre-delivery payments for future aircraft deliveries, remained strong at AED2.3 billion.

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

Ghaith Al Ghaith, chief executive, flydubai, added: “Over the last two years we have seen passenger traffic grow cumulatively by 52 per cent in terms of RPKM.

“We continue to demonstrate that we gain loyal customers across our network who recognise the benefits of direct air links and enjoy our on-board offering.

“The continuation of mainly lower fuel prices and on-going cost management efforts are reflected in the 16 per cent improvement in terms of ASKM over the last two years.

“We have however seen a difficult pricing and operating environment.”