60% drop in profits for flydubai

flydubai has reported profits of AED 100.7 (US $27.4 million) for 2015, a 60% nosedive on its 2014 figure. flydubai aircraft

A strong dollar has been cited as the cause of the drop, but a stronger second half-year was welcomed.

Total revenue for the full year was AED 4.9 billion ($1.33 billion), an increase of 11% 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, the carrier said.

His Highness 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.”

Starting in 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.

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