What’s New

flydubai announced its Full-Year Results for 2016 reporting a profit of USD 8.6 million. It reported total revenue of USD 1.37 billion an increase of 2.4% compared to the same period in 2015.
H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of flydubai, said: “these results see flydubai report its fifth consecutive full-year of profitability. In 2012, our third year of operation, we carried 5.1 million passengers. This year [2016], we have carried 10.4 million passengers demonstrating that flydubai continues to help change the way both business and leisure passengers travel around the region. An established tourism destination and global centre for business together with the UAE’s geographic location has supported the need for increased connectivity.”
Mr. Ghaith Al Ghaith, Chief Executive Officer (CEO) of flydubai, reviewing the Annual Results for 2016, commented: “Over the last two years we have seen passenger traffic grow cumulatively by 52% in terms of RPKM. We continue to demonstrate that we gain loyal customers across our network who recognize the benefits of direct air links and enjoy our onboard offering. The continuation of mainly lower fuel prices and ongoing cost management efforts are reflected in the 16% improvement in terms of ASKM over the last two years. We have however seen a difficult pricing and operating environment.”
Cost and revenue performance
EBITDAR was healthy at 21.1% of revenue; an improvement from 2015’s figure of 20.5%.
The closing cash and cash equivalents position, including pre-delivery payments for future aircraft deliveries, remained strong at USD 0.63 billion.
Fuel costs were 25% of operating costs compared to 30.6% in 2015, against a backdrop of lower fuel prices for the year, with legacy fuel hedges impacting only 21% of the volume for full year 2016. 
Ancillary revenue comprising of baggage, cargo and inflight sales contributed 13.8% of revenue; dropping from 15.1% from 2015.
Operational performance
Aircraft deliveries: 8 Next-Generation Boeing 737-800 aircraft joined the fleet in 2016 in support of network expansion. The average age of the fleet was 3 years 8.5 months.
Business Class: the growth in the number of flydubai’s Business Class passengers continued and saw the airline carry 2.4 times the number of passengers as in 2014. The Subcontinent saw the strongest demand for Business Class carrying more than double the number of passengers. This was followed by the Caucasus which grew by 88%, as a result of a liberalisation of the visa rules, creating an increased demand from both inbound and outbound traffic flows. In addition, Business Class passengers grew by 38% in Europe and 24% in the GCC and Middle East.
Network expansion: During the course of 2016, increased flight frequency on existing routes and a maturing in the performance of the 41 new routes launched in 2014 and 2015 saw ASKM grow by 9%.
Al Maktoum International (DWC): flydubai has been operating from DWC since October 2015. With its two gateways, flydubai will continue to gradually increase its operations at DWC based on the further expansion of the airport.
Staff numbers: flydubai continued to grow its experienced team with a total of 3,773 staff including 746 pilots, 1,618 cabin crew and 282 engineers.
OPEN: flydubai launched its simple and straightforward rewards programme on 25 October 2016.
Outlook
During 2017, flydubai will be the first airline in the Middle East to receive the new model Boeing 737 MAX 8 and the first of these aircraft will enter into service in the second half of the year. The overall capacity will not grow during 2017, as short term capacity needs are adjusted, due to the ongoing challenging operating environment. Since launch, one of the principles of flydubai’s fleet planning strategy was to maintain a young fleet. Under these plans, the airline will see the eight-year lease term expire for 4 Next-Generation Boeing 737-800 and during the year these aircraft will be retired from the fleet.
Source: flydubai