Flydubai reports strongest financial results in its 15-year history

Gulf Today

25-02-2025

Flydubai reported on Monday record-breaking annual results for its financial year ending 31st December 2024.
The Dubai-based carrier marks its strongest-ever financial performance in its 15-year history, reporting a pre-tax profit of Dhs2.5 billion ($674 million); a 16% growth compared to the previous financial year with a total revenue of Dhs12.8 billion ($3.5 billion), marking an increase of 15% compared to Dhs11.2 billion ($3 billion) in 2023.
The new milestone was driven by the strength of flydubai's diverse network as well as its strong and agile business model.
Commenting on the announcement of the airline's Financial Results, Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of flydubai, said, 'flydubai continues to push boundaries and reach new milestones year-on-year. In its young, but impactful, journey, it has emerged as a key player in the aviation industry in Dubai and the region. Its business model is built on solid foundations and an unwavering commitment to supporting Dubai's economic and tourism vision. Forging invaluable air links to underserved markets has supported Dubai's thriving aviation hub, making Dubai one of the most accessible and connected cities in the world. We have seen evidence of the positive impact flydubai has in the markets it operates in, stimulating free flows of trade and tourism and acting as a lifeline during challenging times.
"flydubai is well-placed for continued growth and success in the next chapter of its journey as it expands its horizons and operations, continues to invest in innovation and delivers an enhanced customer experience over the coming years. This could not have been possible without the UAE's visionary leadership and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, who have created the framework for a secure and safe environment, progressive policies and world-class infrastructure that foster success.'
flydubai reported a year-on-year increase of 15% in its EBITDA at Dhs4.1 billion ($1.1 billion), reflecting the business's strong focus on operational and cost efficiency, digitalisation and ongoing investment in enhancing customer experience.
Fuel cost accounted for 28% of operating costs in 2024 compared to 32% in 2023, due to a lower average fuel price. The airline reported a closing cash and bank balance (including pre-delivery payments) of Dhs4.7 billion ($1.3 billion).
The airline carried 15.4 million passengers in 2024, up 11% compared to 2023. Overall capacity, measured in Available Seat Kilometres (ASKM), increased by 10%, Passenger Load Factor increased by 1.2 percentage points and Passenger Yield improved with an increase of 1%.
This was driven by increased demand for both business and leisure travel around its network.
flydubai's Business Class offering continued to attract more customers, recording an 18% increase in uptake across its network, carrying almost half a million passengers in 2024.
Ghaith Al Ghaith, Chief Executive Officer at flydubai, commented, 'Our record-breaking financial performance, for the fourth consecutive year, demonstrates our continued ability to grow our business and navigate difficult economic and geopolitical challenges through forward planning, drawing on our strength to adapt and evolve to the changing market and customer needs. Our collaborative approach with our key stakeholders and agility remain key drivers to this success, as well as the collective effort of our people who have been instrumental to it.
'Our network: the carrier had to reevaluate its route development plans and implement frequency revisions across the network due to ongoing challenges with aircraft delivery schedules in 2024. Despite its reduced expansion plans, flydubai grew its network in 2024 to 131 destinations in 55 countries, 97 of which were underserved markets.
The carrier reinstated two operations to Al Jouf in Saudi Arabia and Sochi in Russia. Furthermore, it added 10 new destinations including Basel in Switzerland, Bhairahawa in Nepal, Islamabad and Lahore in Pakistan, Kerman and Kish Island in Iran, Langkawi and Penang in Malaysia, Mombasa in Kenya as well as The Red Sea in Saudi Arabia.
Seasonal summer operations, between June and the end of September, continued to attract more passengers to the carrier's nine destinations on offer.
Our fleet: by the end of December, the number of aircraft in flydubai's fleet was 88, with an average fleet age of 5.3 years. Four Boeing 737 MAX 8 aircraft were delivered in the first half of 2024, which were from the backlog of previous years and faced extensive delays. flydubai did not receive any of the aircraft that were contractually scheduled to be delivered in 2024 due to ongoing challenges with Boeing's delivery schedule. The carrier extended the lease on four Next-Generation Boeing 737-800 aircraft which were scheduled to be returned to the lessors.
flydubai's current order book stands at 127 Boeing 737 aircraft to be delivered over the next decade in addition to 30 Boeing 787 Dreamliners, following its first wide-body aircraft order valued at $11 billion, starting from 2027.
Almost 2.3 million codeshare passengers enjoyed seamless connectivity across the joint Emirates and flydubai network of 235 destinations in 101 countries via Dubai's leading aviation hub in 2024.
The airline's ongoing recruitment drive has resulted in an expanded workforce of 6,089 employees.
FlyDubai had revenues of $3.5 billion through the year, as compared to $3 billion in 2023. Profits were $572 million in 2023.
The carrier flew 15.4 million passengers in 2024.
Flydubai is the sister carrier to the long-haul airline Emirates, both based out of Dubai International Airport, the world's busiest for international travel. The two carriers have seen their profits rebound after the coronavirus pandemic halted worldwide travel.
WAM