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flydubai has reported profits of US$27.4mn for 2015 following a stronger second half-year, which saw increased numbers of passengers travel across its network
Total revenue for the full year was US$1.33bn, an increase of 11 per cent compared to 2014.
The overall yield, in terms of fils per revenue passenger kilometre (RPKM), was under pressure attributable to the strong dollar; the challenging trading environment across the network; disruption resulting from the suspension of flights on some established routes and a large number of recently launched routes with a lead time required to reach maturity.
Sheikh Ahmed bin Saeed Al Maktoum, chairman of flydubai, said, “2015 was an important year for flydubai. It was a year in which, through determination and commitment, we continued to realise our vision to increase connectivity in support of the UAE’s economic development. The year culminated in two achievements: the delivery of our 50th aircraft; and our fourth full-year of profitability.”
Ghaith Al Ghaith, CEO of flydubai, added that the overall trading environment has remained challenging but the company has maintained a growth story and ended the year positively. “Our robust passenger growth of 30 per cent, in terms of RPKM, underlines the demand for travel within our geographic focus; the continued appeal of Dubai as a destination; and the popularity of our service.”
A stronger performance in the second half of the year coupled with cost management efforts has resulted in a positive end to the year.
Fuel costs reduced to 30.3 per cent of operating costs benefitting from lower fuel prices with 59 per cent of fuel costs unhedged.
The start of flydubai’s new operations at Al Maktoum International-Dubai World Central also saw services become available to Amman, Beirut, Doha, Kathmandu and Kuwait while flights to these destinations continued to be available at Dubai International.
Starting May, flydubai will take delivery of 16 new aircraft over the next 24 months. This includes five new Boeing 737 MAX 8 aircraft due to arrive in the second half of 2017. In line with its strategy to maintain a young and efficient fleet these aircraft will support flydubai’s continued growth as well as replace some of the original aircraft in the fleet. During this period, seven aircraft will be retired.
flydubai has a network of 89 destinations in 43 countries.