Flydubai 2014 profits jump 19% on new routes, lower fuel cost
Dubai’s budget carrier Flydubai has reported a net profit of Dh250 million for 2014, an increase of 12.3% compared to the previous year on the back of new routes and lower fuel costs.
Total revenue and operating income increased by 19.1% to Dh4.4 billion ($1.2 billion)..
Fuel remains the single largest cost at 36% of the total operating costs and though lower than the previous year has benefited from the downward trend in fuel prices starting from the last quarter of 2014.
Currently 30% of fuel requirements for 2015 are hedged.
Other ancillary revenue items including inflight entertainment, onboard sales, seat preferences, checked baggage allowance, car rental, hotel bookings, travel insurance and visa facilitation services comprised 14.4% of total revenue.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Flydubai , said: “Recording its profitability for the third consecutive full year, the 2014 results show that the recent order for more aircraft as well as investments in the offering on the ground and in the air have been the right strategy for the airline.”
Ghaith Al Ghaith, Chief Executive Officer of Flydubai , said: "2014 saw Flydubai open up a record number of new routes in what was a demanding year. To have achieved what we have achieved is significant. The continued investment in our people and operations has strengthened our business and ensures that we are well positioned for sustained growth in the future. It is good to see that more passengers than ever before are travelling with us."
The Dubai carrier carried 7.25 million passengers in 2014 and has carried 24.3 million since it launched its operations.
It saw an increase in passenger numbers between 2013 and 2014 in Africa (14%), Central Asia (57%), Europe (11%) and the Subcontinent (11%).
The airline add 23 new routes last year, creating a network of 86 destinations, and also increased frequency on many of its existing routes.
The airline now operates 1,400 flights per week.
Its network across its geographic focus grew by the number of routes in Africa (100%), in Central Asia (66%), Europe including Russia (40%), the GCC (7%), Middle East (30%) and in the Subcontinent (38%).
Flydubai took delivery of eight new next-generation Boeing 737-800 aircraft and ended the year with a fleet of 43 aircraft.
During the course of the year ahead, it will announce the remaining routes to receive this service and together with the successful completion of the 12-month retrofit programme.
Flydubai continued to strengthen its team increasing the number of staff to 2,883 including 571 pilots, 1,235 cabin crew and 221 engineers representing more than 111 nationalities across its workforce.
Outlook for 2015
2015 will continue to be a demanding year due to the global socio-economic landscape.
Flydubai will see the remaining aircraft from its 2008 order delivered.
Ghaith Al Ghaith said: "We will end 2015 with a fleet of 50 aircraft. Together with the new route launches this is an endorsement of the strategy we set out at the beginning and underlines the achievements of the past six years… We are well positioned for sustained growth in the years ahead as we start to prepare for the new deliveries in 2016 and the first deliveries of the 737 MAX 8s in 2017 bringing further efficiency to our fleet."
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