Flydubai has today announced its Full-Year Results for 2016 reporting a profit of AED 31.6 million (USD 8.6 million).
The company posted a total revenue of AED 5 billion (USD 1.37 billion) an increase of 2.4% compared to the same period last year. The stronger second half, driven by increased passenger numbers, was impacted by downward pressure on yield leading to lower overall revenue growth reflecting a continuation of the same adverse factors reported in the first half.
According to the Chairman of flydubai, His Highness Sheikh Ahmed bin Saeed Al Maktoum: “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, 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,” he stated.
While commenting on the results, Chief Executive Officer (CEO) of flydubai, Ghaith Al Ghaith said: “Over the last two years we have seen passenger traffic grow cumulatively by 52% in terms of RPKM [1]. We continue to demonstrate that we gain loyal customers across our network who recognise 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 [2] over the last two years. We have however seen a difficult pricing and operating environment,” he noted.
The breakdown of the result is as follows:
Cost and revenue performance
EBITDAR [3] was healthy at 21.1% of revenue; an improvement from the previous year’s figure of 20.5%.
The closing cash and cash equivalents position, including pre-delivery payments for future aircraft deliveries, remained strong at AED 2.3 billion.
Fuel costs were 25% of operating costs compared to 30.6% in the previous year, 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 the previous year.
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.
Al Ghaith, looking to the year ahead, said: “we will remain prudent throughout 2017 as we will continue to operate in a challenging socioeconomic environment. Yields will remain under pressure and we expect to report flat growth in the year ahead.
“We are looking forward to receiving the first Boeing 737 MAX 8 in the region which will bring further fuel and operating efficiency to our young modern fleet. We are focused on our strategy to lead in innovation, to provide an unrivalled experience on board and on the ground, as we continue to meet the travel demands of our passengers.”
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