Feb 02, 2017: flydubai has announced its full-year results for 2016 reporting a profit of AED 31.6 million (USD 8.6 million). It has reported total revenue of AED 5 billion (USD 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.
Sheikh 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. 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.”
Ghaith Al Ghaith, CEO, flydubai, reviewing the Annual Results for 2016, commented, “Over the last two years we have seen passenger traffic grow cumulatively by 52 per cent in terms of RPKM (revenue passenger kilometre). We continue to demonstrate that we gain loyal customers across our network who recognise the benefits of direct air links and enjoy our onboard offering. The continuation of mainly lower fuel prices and ongoing cost management efforts are reflected in the 16 per cent improvement in terms of ASKM (available seat kilometre) over the last two years. We have however seen a difficult pricing and operating environment.”
Eight 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. 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 per cent.
During 2017, flydubai will be the first airline in the Middle East to receive the new model Boeing 737 MAX 8 and the first of these aircraft will enter into service in the second half of the year. The overall capacity will not grow during 2017, as short term capacity needs are adjusted, due to the ongoing challenging operating environment. Since launch, one of the principles of flydubai’s fleet planning strategy was to maintain a young fleet. Under these plans, the airline will see the eight-year lease term expire for four Next-Generation Boeing 737-800 and during the year these aircraft will be retired from the fleet.
Looking to the year ahead, Ghaith, 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.”