flydubai revenue up 19% in 2014

Dino D'Amore
By Dino D'Amore March 3, 2015 15:06

flydubai revenue up 19% in 2014

flydubai achieved a 19.1% increase in revenues to AED 4.4 billion ($1.2 billion), with profits up by 12.3% to AED 250 million ($68 million) and a capacity increase (ASKM) of 9.3%.

EBITDAR growth is in line with the increase in revenue and is at a healthy rate of revenue at 22.1%, the airline reported. Flydubai has benefited from the downward trend in fuel prices starting from the last quarter of 2014, even though currently 30% of fuel requirements for 2015 are hedged.

Other ancillary revenue items comprise 14.4% of total revenue.

flydubai Cargo has secured ACC3 EU certification which will allow the airline to transport Cargo to the new European routes.

flydubai continued to diversify its sources of funding in 2014 and in November it issued a landmark debut Sukuk transaction successfully raising $500 million.  The five-year Sukuk was six times oversubscribed. The deal also won the Airline Economics Aviation 100 Islamic Deal of the Year award for 2015.

flydubai 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 added 23 new routes, created a network of 86 destinations and increased frequency on many of its existing routes during 2014. Weekly flight frequencies to Beirut increased from 14 to 21, to Kuwait from 53 to 77, to Muscat from 28 to 41, to Salalah from 3 to 5 and Tbilisi which went to a daily service. 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%).

His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of flydubai, said: “The UAE has firmly established itself as a centre of gravity for aviation.  We have long recognised the importance of aviation to our economic growth.  flydubai continues to make a key contribution to our economy in particular as a result of its strategy to open up previously underserved routes.”

His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of flydubai, commenting on the Annual Results added: “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. flydubai’s role in the aviation sector is now being recognised beyond the region.”

Ghaith Al Ghaith, Chief Executive Officer of flydubai, reflecting on last year, 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.”

flydubai took delivery of eight new 737-800NGs  and ended the year with a fleet of 43 aircraft.

In October, it completed to schedule its rolling retrofit programme to configure the existing aircraft in its fleet with Business Class. The first seven aircraft it received between 2009 and 2010 were not part of the retrofit programme.

flydubai increased the number of staff to 2,883 including 571 pilots, 1,235 cabin crew and 221 engineers representing more than 111 nationalities across flydubai’s workforce.

Ghaith Al Ghaith commenting on flydubai’s operational performance, said: “The changing economic landscape not only makes demands on the business but also provides us with opportunities. Achieving a balance as a result of the speed with which we are able to respond to the changing global economic environment is reflected in our operational performance as we are well set to create a network of more than 100 destinations. It is important for us to continue to recognise this global rebalancing as we grow our fleet, expand our network and evolve our business model.”

Dino D'Amore
By Dino D'Amore March 3, 2015 15:06