Thursday, February 22, 2024
Today, flydubai, the airline headquartered in Dubai, revealed its exceptional annual financial outcomes for the period ending on December 31, 2023, achieving its most robust performance to date. In response to the disclosure of flydubai’s Full-Year Results for 2023, His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of flydubai, remarked:
“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.
This remarkable achievement has been made possible due to the vision of the UAE’s leadership and the progressive policies of His Highness Sheikh Mohammed bin Rashid Al Maktoum which are conducive to the success of the aviation industry and flydubai as a key contributor to the sector.
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.
I am proud of the work the team has done to achieve these outstanding results, setting the bar even higher for the years to come as flydubai continues to play an intrinsic role in supporting Dubai’s leading position on the global trade, tourism and aviation stage.”
Ghaith Al Ghaith, Chief Executive Officer at flydubai, commenting on flydubai’s Full-Year Results for 2023, 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.
I am very proud of the hard work and dedication of everyone at flydubai which has enabled us to break all our records while keeping our customers at the heart of everything we do.”
Cost and Revenue Performance:
– EBITDAR1: Represents 33% of the annual revenue.
– Closing Cash and Cash Equivalents Position: Stands at AED 4.8 billion, including pre-delivery payments for future aircraft deliveries, compared to AED 4.3 billion the previous year.
– Fuel Cost: Remains the primary operating cost, comprising 32% of total annual operating costs due to increased fuel prices. The airline continues to explore fuel hedging options, having hedged 12% of its fuel requirement last year.
Operational Performance:
– Network Expansion: flydubai introduced 17 new routes, expanding its network to 122 destinations in 52 countries. Notable additions include Ashgabat, Cairo Sphinx, Corfu (seasonal), Kabul, Milan, Mogadishu, Neom, Olbia (seasonal), Poznań, Shymkent, and St. Petersburg. Operations to Krabi and Pattaya in Thailand marked the airline’s return to Southeast Asia.
– Passenger Growth: The airline served 13.8 million passengers across its network, a 31% increase from 2022. Demand for Business Class saw a significant rise of 32% in the GCC, Central Asia, and the Caucasus. Moreover, there was a 56% increase in passenger numbers on the GCC network and a 36% increase in Europe.
– Fleet Expansion: flydubai added 13 new aircraft to its fleet, bringing the total to 84 aircraft, comprising 29 Next-Generation Boeing 737-800, 52 Boeing 737 MAX 8, and 3 Boeing 737 MAX 9 aircraft. Notably, the 737 MAX 8 aircraft is 14% more fuel efficient than its predecessor, contributing to a 1.3% reduction in average fuel burn per block hour year-on-year.
– Aircraft Delivery Challenges: Despite challenges with the manufacturer’s delivery schedule resulting in four fewer aircraft deliveries in 2023, flydubai entered into an ACMI agreement with Smartwings for six wet-leased aircraft to meet the surge in demand.
– Future Fleet Plans: At the Dubai Airshow 2023, flydubai placed an order worth USD 11 billion for 30 Boeing 787 Dreamliners to be delivered from 2026, marking its first wide-body order and diversifying its fleet.
– Codeshare Partnership with Emirates: The strategic partnership between Emirates and flydubai in its sixth year facilitated seamless connectivity for over 3.7 million passengers in 2023 across a joint network of 222 destinations.
– Recruitment: flydubai’s workforce expanded to 5,545 employees, with over 1,000 new hires in 2023, primarily in pilot, cabin crew, and engineering roles to support fleet and network growth. The airline also doubled the number of UAE Nationals in its workforce, attracting young talent through cadet, engineering, and work placement programs.
During the reporting period ending on December 31, 2023, notable operational and performance metrics were achieved. The total annual revenue amounted to AED 11.2 billion (USD 3 billion), while the annual profit reached AED 2.1 billion (USD 572 million). Cash assets, inclusive of pre-delivery payments, totaled AED 4.8 billion. Key indicators such as Revenue Passenger Kilometers (RPKM) demonstrated a growth rate of 29.7%, with Available Seat Kilometers (ASKM) totaling 40,292 million, marking a 27% increase from 2022. Passenger numbers surged to 13.8 million, reflecting a 31% rise compared to the previous year. Fuel costs accounted for 32% of the total annual operating expenses. The fleet comprised 84 aircraft with an average age of 4.5 years. A total of 107,862 departures were recorded, indicating a 24% increase from 2022. The company employed 5,545 individuals and served a network of 122 destinations.
Outlook statement for 2024
Ghaith Al Ghaith, Chief Executive Officer at flydubai, commenting on the outlook for 2024, said:
“we are dedicated to supporting the Dubai Economic Agenda D33 to solidify its position as one of the world’s top three cities for tourism and business over the next decade. We will continue with our strategic network development plans that will see more destinations join the flydubai network this year starting with the five new routes announced since the start of 2024 including Basel, Riga, Sochi, Tallinn and Vilnius.
Additionally, we will take delivery of 12 Boeing 737 MAX aircraft allowing us to add capacity on existing routes as demand for travel across our network returns to pre-pandemic levels.
Looking ahead, we are renewing our commitment to further enhancing our customer experience and providing the right product at the right time. This year will see more investment in technologies across the business and the retrofitting of our fleet of Next-Generation Boeing 737 aircraft to provide a more cohesive customer experience.
Since our inception, efficiency and sustainability have been core values for flydubai. We are committed to supporting the UAE’s plans to achieve net zero by 2050 and this year we will continue to identify areas across the business to enhance our sustainability efforts complementing the fuel and carbon emissions reduction that our fleet of Boeing 737 MAXs provides.
flydubai’s agility, forward planning, as well as its strong financial position, make us well positioned to successfully navigate through persisting challenges including elevated fuel prices, disruption to the industry’s supply chains, rising global inflation, softening yield margins and ongoing geopolitical uncertainties.
Our commitment to innovation, operational efficiency and customer-centricity will remain the focal points in the coming years as we lay the foundations for another chapter of our journey marked by the arrival of the first wide-body aircraft from 2026.”
Sunday, April 28, 2024
Sunday, April 28, 2024
Sunday, April 28, 2024
