Flydubai reported a 5 per cent increase in its profit for 2024 as the airline continues to expand its fleet amid strong air travel demand.
The Dubai airline's annual profit grew to Dh2.2 billion ($611 million) last year, from Dh2.1 billion in 2023, and it achieved a "record" pre-tax profit of Dh2.5 billion for the year, a 16 per cent rise from the previous year, flydubai said on Monday.
Revenue increased more than 14 per cent cent to Dh12.8 billion, as the airline carried 15.4 million passengers from Dubai last year, an annual increase of 11 per cent.
Flydubai’s financial performance for the fourth consecutive year demonstrates the airline’s continued ability to navigate difficult economic and geopolitical challenges, said chief executive Ghaith Al Ghaith.
Flydubai cancelled the launch of routes planned for the second half of last year and reduced capacity on others because of delays in jet deliveries from Boeing and supply-chain problems.
The airline said it did not receive any of the aircraft it was contractually scheduled to receive last year due to continuing challenges with the US plane maker's delivery schedule. As a result, flydubai extended the leases on four Next-Generation Boeing 737-800 planes that had been scheduled for return.
Flydubai said it expects to receive 12 new Boeing 737s this year and replace some of its existing aircraft to support its network expansion plans.
“Our strategic plans are highly influenced by the manufacturer’s ability to deliver on their promise to bring the aircraft delivery schedules back on track and clear the backlog,” Mr Al Ghaith said.
By the end of December, flydubai's fleet consisted of 88 planes, comprising 29 Next-Generation Boeing 737-800s, 56 of the 737 Max 8s, and three of the 737 Max 9s.
The airline’s capacity, measured in available seat kilometres, increased by 10 per cent in 2024, while load factor, the percentage of available seating capacity filled by passengers, grew 1.2 per cent.
Fuel accounted for 28 per cent of flydubai’s operating costs last year, compared to 32 per cent in 2023, due to a lower average fuel price.
Flydubai's results come after Dubai International Airport achieved a record-breaking 92.3 million passengers last year, growing 6 per cent annually and reinforcing Dubai's status as a leading international travel hub.
The world's busiest airport by international traffic beat its November forecast of 91.9 million annual passengers, up from 87 million the previous year and exceeding its pre-Covid record of 89.1 million in 2018.
The emirate attracted 16.79 million international tourists in the first 11 months of 2024, with western Europe its top source market, followed by South Asia and Gulf countries.