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flydubai Reports 1H18 Loss

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flydubai Reports 1H18 Loss

flydubai Reports 1H18 Loss
September 05
16:00 2018

LONDON – flydubai has this week (Sept 5) released their half-year financial reports for the reporting period up to June 30 this year.

The carrier has recorded total revenue increasing by 10.4% compared to the same period last year to $761 million.

flydubai did report a loss of $86.3 million for the period ending June 30, with at least $47.6 million of that accounting to the 35% increase in Average Brent Crude Oil Prices.

Passenger numbers for the carrier remain steady at 5.4 million, with the airline contributing to 12.3% of all traffic operating out of Dubai.

The carrier has said that they are continuing to “invest for the long-term in the fleet, unique new routes across the network and airline’s infrastructure aligned to strategic objectives”.

Ghaith Al Ghaith, the CEO at flydubai followed by Arbind Kumar, the Senior VP of Finance commented on these results.

“In its first nine years of operation, much has been achieved to firmly establish flydubai as an intrinsic part of the aviation industry.

We have continued to see a tough trading environment and the Half-Year Results reflect these short-term challenges. 

We continue, however, to invest in our fleet, network and operations recognising opportunity as we look to the future”, said Ghaith.

“We have seen good growth in our revenue during the first six months of this year. 

We remain focused on the three priorities we had previously set: to improve our cost performance, broaden our distribution and optimise our network whilst keeping our cost management plan under constant review. 

The stronger dollar, rising oil price and higher interest rates are expected to continue to impact our performance and we will need to maintain a tight grip on the deployment of our capacity. 

The benefits of our investments, aligned to our long-term financial goals, provide a solid foundation for the next phase of development for the airline”, said Kumar.

As a result of such losses, flydubai has had to cancel some operations to destinations as well as investment in the development of other routes to aid in their maturity.

The following routes were cancelled as a result of the losses:

  • Ahwaz
  • Al-Jouf
  • Bandar Abbas
  • Bangkok
  • Chittagong
  • Dhaka
  • Hofuf
  • Male
  • Mattala
  • Tehran
  • Voronezh
  • Yanbu

The carrier then replaced these ten destinations with the following:

  • Batumi
  • Catania
  • Dubrovnik
  • Erbil
  • Kinshasa
  • Krakow
  • Qabala
  • Sulaimaniyah
  • Thessaloniki
  • Tivat
Courtesy of Emirates.

For the rest of the year, flydubai is expected to take delivery of seven new Boeing 737 aircraft, four of which will be the MAX8.

The other three will be the MAX9, which the carrier has been anticipating for some time.

There will also be some new route additions by the carrier. They are as follows:

  • Daily flights to Helsinki – Oct 11.
  • Codeshared operations with Emirates between Dubai and Zagreb between Dec 2 and Mar 30, 2019.

On top of this, flights to 10 destinations will relocate to Terminal 3 at Dubai due to the partnerships between Emirates and flydubai. 

In all, with revenues increasing, it is down to flydubai to find ways of bringing down their costs in order to bring the losses down and restore itself back to profitability. 

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James Field

James Field

James is a passionate AvGeek based in Manchester, U.K who has been actively spotting for years. James has been an Aviation Enthusiast for 8 years and has a fond likening to Concorde! James hopes to grow in the aviation industry with journalism being his primary focus.

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