Flydubai announces $9m profit

Budget airline Flydubai made a profit of AED 31.6 million ($8.6 million) in 2016, according to a report released on Wednesday.

The Dubai-based airline reported a total revenue of AED 5 billion ($1.37 billion) an increase of 2.4 percent compared to the same period last year. A statement by the carrier said its stronger second half of the year was driven by increased passenger numbers.

“These results see flydubai report its fifth consecutive full-year of profitability,” said His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of flydubai. “An established tourism destination and global centre for business together with the UAE’s geographic location has supported the need for increased connectivity.”

Also commenting, Ghaith Al Ghaith, Chief Executive Officer (CEO) of flydubai, while reviewing the Annual Results for 2016, said: “Over the last two years we have seen passenger traffic grow cumulatively by 52 percent in terms of revenue passenger kilometre (RPKM).”

Although he acknowledged that the continuation of mainly lower fuel prices and ongoing cost management efforts are reflected in the 16% improvement in terms of available seat kilometre (ASKM) over the last two years. “We have however seen a difficult pricing and operating environment,” said Ghaith.

Ghaith Al Ghaith, CEO of flydubai, looking to the year ahead, said: “we will remain prudent throughout 2017 as we will continue to operate in a challenging socioeconomic environment. Yields will remain under pressure and we expect to report flat growth in the year ahead. We are looking forward to receiving the first Boeing 737 MAX 8 in the region which will bring further fuel and operating efficiency to our young modern fleet. We are focused on our strategy to lead in innovation, to provide an unrivalled experience on board and on the ground, as we continue to meet the travel demands of our passengers.”