By Staff writer
Dubai's low-cost airline says revenue totals $627m in the first half of 2016, passenger numbers up 16.5%
flydubai on Thursday announced total revenue of AED2,302 million ($627 million) for the first half of 2016, an increase of 5.4 percent compared to the same period last year.
The low-cost airline also reported in a statement that losses of AED89.9 million were 39 percent lower than H1 2015.
The carrier said passenger numbers increased to 4.9 million, an increase of 16.5 percent while the number of Business Class passengers carried, per departure, saw an increase of 19 percent.
In the first half of its financial year, flydubai also saw an increase in the flight frequency to existing destinations on its network including Bahrain, Baku, Belgrade, Bucharest, Muscat and Salalah.
Ghaith Al Ghaith, CEO of flydubai, said: "flydubai's network continues to mature offering our passengers enhanced connectivity as we meet the growing demand for travel in the region. Looking ahead to the second half of the year, we have started to receive the first deliveries from the order for 111 aircraft placed in 2013 with a total of 8 aircraft scheduled to join our fleet between May and December.
"Our results have shown the same trend as last year and we expect a stronger second half."
Mukesh Sodani, chief financial officer of flydubai, added: "We have seen continued pressure on yields due to the uncertain international economic situation set against a backdrop of lower oil prices and adverse currency exchange rates. We maintain a sharp focus on cost improvement while pursuing our broader goal of expanding our network and our service offering."
Lower fuel prices, together with a reduction in its hedging position from 41 percent last year to 22 percent this year, saw fuel account for 23.5 percent of total operating cost down from 30.6 percent last year.
flydubai said it has received positive feedback from its passengers about its services from Al Maktoum International (DWC) which provides further opportunities for growth in 2017 beyond the services it is already operating.
In March, a flydubai passenger plane crashed in Russia, killing all 62 people on board.