Emirati low-cost airline flydubai is soaring higher than ever with an astonishing profit recorded for 2022.
Opening the announcement, the Chairman of flydubai His Highness Sheikh Ahmed bin Saeed Al Maktoum commented on the airline’s profit:
“flydubai’s record performance for 2022 is a direct result of the carrier’s robust business model as well as its adaptability and agility during challenging times which has cemented its position as a key contributor to the success of Dubai’s aviation hub.”
The Chairman also attributed the 2022 success to the airline’s flexibility and efficient management, allowing flights to morph perfectly with that of the Emirates schedule.
He furthered: “flydubai remained committed to maintaining the highest levels of cost and operational efficiencies while preserving and growing its workforce over the past two years.”
“This meant the carrier was quick to cater to the pent-up demand and support Dubai’s accelerated recovery.”
“flydubai’s second consecutive year of profitability since the start of the pandemic is a testament to the exceptional contribution of its skilled team and the positive environment we operate, which is conducive to growth and success.”
“I look forward to seeing the vital role flydubai plays in the continued growth of the aviation sector; a key driver in realising the Dubai Economic Agenda D33,” he concluded.
Cost and Revenue Data
With the airline leaving an impressive financial year behind, we will break down the financial details. The airline’s EBITDAR was reported a 28% of annual revenue.
FlyDubai’s closing cash and cash equivalents positions stood at AED 4.3 billion compared to AED 3.8 billion in 2021. This also includes its pre-delivery payments for future aircraft handovers.
Not surprisingly, its fuel cost continues to be the highest factor of the airline’s operator cost for the carrier with 33.9% of the total annual operating costs, due to an aggregate increase in fuel prices last year.
The continuation of the roll-out of Boeing 737-8MAX, will substantially shave-off costs for the airline. Lastly, the airline successfully secured the financing of its most prized upcoming assets, the 20 Boeing 737 MAX aircraft and 3 LEAP-1B engines.
Also commenting on the airline’s 2022 financial result from Ghaith Al Ghaith, Chief Executive Officer at flydubai added some further factors which contributed to the successful year:
“2022 has been an exceptional year, with accelerated demand, bookended by the final few months of Expo 2020 and the unprecedented efforts to support travel to and from the World Cup in Doha.”
“Our robust cost control measures, network optimisation, strong yield and the significant fuel efficiencies of our fleet of Boeing 737 MAX aircraft have contributed to this historic financial performance. I am proud to see our network, fleet, workforce and performance reach new heights.”
With the airline reporting impressive results, flydubai never fails to impress when it comes to route expansion. The Dubai-based introduced 16 routes bringing the airline’s total route network to 114, including Mogadishu and seasonal summer routes, including Batumi and Bodrum.
The airline carried 10.6 million last year, which is impressive considering it is complementing Emirates’ operations.
Moreover, the Dubai-based carrier witnessed a 46% increase in passengers connecting to the airline network through its codeshare with Emirates, compared to a lesser 34% in the previous year (2021).
The World Cup Effect
With Dubai being positioned in a strategic location, and codesharing with Emirates, the World Cup in Doha stimulated the demand for the airline aggressively, allowing the airline to achieve AED 1.2 billion.
FlyDubai’s ‘unfair advantage’ of its geographic location and the World Cup propels the airline to be one of the worlds leading low-cost hybrid carriers in the Middle East, if not the world. Global and or regional events do tend to play a strong contributing role in an airline’s performance.