flydubai records Dhs2.1 billion net profit in 2023

flydubai announced on Thursday record-breaking annual results for its financial year ending 31st December 2023, with net profit reaching Dhs2.1 billion ($572 million), an increase of 75 per cent compared to 2022, marking the carrier’s strongest-ever performance.

Meanwhile, the company's total annual revenue settled at Dhs11.2 billion (US$3 billion) compared to Dhs9.1 billion ($2.5 billion) in 2022; an increase of 23 per cent compared to 2022. flydubai carried 13.8 million passengers across its network; an increase of 31 per cent compared to 2022. The carrier took delivery of 13 new aircraft and ended 2023 with 84 aircraft.

Commenting on the 2023 financial results, Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of flydubai, said, "In its 15th year of operations, flydubai has emerged as one of the key players in the UAE’s aviation industry and a major contributor to Dubai’s economy. Its solid business model has enabled the carrier to grow exponentially even during challenging times, doubling its operating fleet and expanding its network since the pandemic.

"The decision to accelerate its aircraft deliveries during the pandemic, preserve its workforce and to move forward with its ambitious network expansion plans has proven to be the correct strategy for the carrier resulting in its strongest-ever performance.”

Ghaith Al Ghaith, Chief Executive Officer at flydubai, said, "Building on the momentum from our previous strong performance, we continued to grow surpassing all pre-pandemic levels to achieve the most profitable year in the history of the airline. The confidence our leadership and key partners have in us has kept us steadfast in our commitment to connect more underserved markets to Dubai and to enable more passengers to travel conveniently more often. More than 108 million passengers have chosen flydubai since our first flight took off in 2009, proving the attractiveness of our offering and the city we carry in our name."

Cost and revenue performance

flydubai's closing cash and cash equivalents position (including pre-delivery payments for future aircraft deliveries) hit Dhs4.8 billion compared to Dhs4.3 billion last year.

Fuel cost continues to be the single highest operating cost for the airline accounting for 32 per cent of total annual operating costs, due to elevated fuel prices. The airline continues to explore fuel hedging options and last year it hedged 12 per cent of its fuel requirement.

Operational performance

flydubai launched 17 routes and ended 2023 with a network of 122 destinations in 52 countries including Ashgabat, Cairo Sphinx, Corfu (seasonal), Kabul, Milan, Mogadishu, Neom, Olbia (seasonal), Poznań, Shymkent and St. Petersburg. The launch of operations to Krabi and Pattaya in Thailand marked flydubai’s return to Southeast Asia.

WAM