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flydubai performance dips for H1 2017

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The financial results announced for flydubai’s half-year results for 2017 state that the airline witnessed a dip of AED 142.5 million (US$ 38.8 million) for the period ending 30 June 2017. However, total revenues have shown positive signs at AED 2.5 billion (US$ 689 million) resulting in an increase of 9.9% compared to first six months of last year. Historically, the trend for the second half has been stronger than the first half.

Passenger numbers increased to 5.4 mn; an increase of 10.5% compared to first six months of 2016. The number of passengers carried per departure saw an increase of 13.7% for the same period. Subsequently, the number of business class passengers carried per departure saw an increase of 22% compared to 2016.

In addition, flydubai contributed 19.4% to total growth at Dubai Airports compared to first half of 2016. During first six months of 2017, flydubai contributed 12.4% of all traffic in Dubai. The airline also faced comparatively higher fuel expenses during the reporting period with fuel costs accounting for 24.8% of operating costs compared to 23.5% in the previous reporting period. In addition, the airline added eight aircraft to its fleet since July 2016.

The closing cash and cash equivalents position including pre-delivery payments for future aircraft deliveries remained robust at AED 2.1 billion.

Ghaith Al Ghaith, chief executive officer of flydubai, said, “We will continue to manage our cost performance and balance this with our long-term view of the potential for air travel in the region.  We know that we need to remain flexible to market dynamics across our network. We will continue our disciplined approach to increasing capacity while pursuing our broader goal of firmly establishing flydubai at the center of the global travel industry.”

During the first half of 2017, the airline took delivery of the last of the Next-Generation Boeing 737- 800 aircraft receiving one aircraft in February and a second aircraft in April. The average age of the fleet is four years. flydubai also started twice-weekly flights to Sylhet on 15 March 2017 increasing to six flights per week in May. For the first time, flights for the summer season were launched to Batumi in Georgia, Qabala in Azerbaijan and Tivat in Montenegro. Due to demand, direct flights to these new holiday destinations services have been extended to October.

The airline is set to receive six new aircraft by December 2017 with entry into service during the fourth quarter. flydubai has been operating flights to Russia since 2010 and will further expand its network to 10 destinations. Twice weekly flights from Dubai to Makhachkala and Voronezh will operate from the end of October 2017. In addition, flights from Dubai to Ufa, operating three times a week, will relaunch on 31 October 2017.

Finally, the airline is building a new headquarters office located on the Emirates Road and is expected to be available for occupation from 2019.