Wednesday, 5 September 2018

Big losses reported by flydubai

United Arab Emirates low-cost airline flydubai is due to take 7 more Boeing 737s during the last part of this year, which will include its first Max 9 models.

FlyDubai is returning four 737-800s to their leasing firms as it welcomes three take 737 Max 9s and four 737 Max 8s. The airline will “maintain a tight grip” on capacity deployment, in the face of rising fuel prices, as part of its efforts to cut costs and keep spending under control. Senior vice-president of finance Arbind Kumar said Flydubai has achieved “good” revenue growth and that it remains focused on the priorities of improving cost performance, optimising the network, and broadening distribution.

The airline has reported its latest results today, some of the key points include:

Total revenue increased to AED 2.8 billion (USD 761 million) for the six-month period; an increase of 10.4% compared to the same period last year
RPKM[1] grew by 6.5% compared to the same period in the first half of last year
Reports loss of AED 316.8 million (USD 86.3 million) for the period ending 30 June 2018
A price impact of AED 175 million due to a 35% increase in the Average Brent Crude Oil prices compared to the same period last year
Passenger numbers remained steady at 5.4 million during the first six months of the reporting period
During the first six months of 2018, flydubai contributed 12.3% of all traffic in Dubai
Continues to invest for the long-term in the fleet, unique new routes across the network and airline’s infrastructure aligned to strategic objectives
Rising fuel costs have had a major impact on the airline, increasing operating costs as the average Brent crude oil prices had risen by around 35%.

Ghaith Al Ghaith, Chief Executive Officer at flydubai, said: “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.”