Dubai: Flydubai posts record profit before tax, driven by lower fuel costs, higher passenger numbers
Flydubai on Monday announced that it posted record profit before tax in its 15-year history on the back of lower fuel costs and network expansion.
The airline noted that its ongoing recruitment drive has resulted in its workforce reaching 6,089 employees.
The Dubai-based carrier reported a pre-tax profit of Dh2.5 billion – a 16 per cent growth compared to the previous financial year with total revenue of Dh12.8 billion, marking an increase of 15 per cent.
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Sheikh Ahmed bin Saeed Al Maktoum, chairman of flydubai, said the airline's business model is built on 'solid foundations".
'We have seen evidence of the positive impact flydubai has in the markets it operates. It stimulates free flows of trade and tourism and acts as a lifeline during challenging times,' he said.
'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 planning, drawing on our strength to adapt and evolve to the changing market and customer needs,' said Ghaith Al Ghaith, CEO at flydubai.
The carrier posted a 15 per cent rise in its EBITDA at Dh4.1 billion.
Fuel cost accounted for 28 per cent of operating costs in 2024 compared to 32 per cent in 2023, due to a lower average fuel price. The airline reported a closing cash and bank balance (including pre-delivery payments) of Dh4.7 billion.
The airline carried 15.4 million passengers in 2024, up 11 per cent compared to 2023. It added 10 new destinations.
Saj Ahmad, chief analyst at StrategicAero Research, said despite the 737 MAX delivery issues faced by flydubai, the airline has powered through 2024 with record-breaking numbers.
'Not only does this underscore their power to open up new markets and draw in passengers, it's evident that their strategy to expand is yielding superb financial rewards too,' he said.
'The rise in profits to Dh2.5 billion on the back of a 15 per cent rise in total revenue means that the airline is not only putting more passengers on its airplanes, its monetising this while using the fuel efficiency of its growing 737 MAX fleet to lower operational costs too,' added Ahmad.
He noted that the airline has 'arguably cemented its place as one of the biggest and most profitable UAE airlines after Emirates".
Delivery delays
It received four Boeing 737 MAX 8 aircraft which were delivered in the first half of 2024. These aircraft were from the backlog of previous years and faced extensive delays.
However, the airline said it 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".
Therefore, the carrier extended the lease on four Next-Generation Boeing 737-800 aircraft which were scheduled to be returned to the lessors to cater to new route networks.
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.
Ghaith Al Ghaith expects 2025 to be 'another positive' growth year for the airline.
'Our strategic plans are highly influenced by the manufacturer's ability to deliver on their promise to bring the aircraft delivery schedules back on track and clear the backlog. Flydubai will receive 12 new Boeing 737s in 2025 to continue growing its fleet, replace some of its existing aircraft and support its network expansion plans,' he said in the annual statement.
He assured that the airline can manage 'external challenges such as rising inflation, supply chain disruptions as well as geopolitical tensions.'
Saj Ahmad noted that 2025 will be a busy year for flydubai with new routes in the offing and the prospect of an early Ramadan this year. It means a longer summer season to look forward to and in tandem with Emirates, both airlines will look to consolidate and dominate their positions ahead of this year's air show in November.
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