Flydubai announces record 2023 profit amid surge in passenger numbers

Flydubai said it is “well positioned” to navigate the challenges of high fuel prices and supply chain disruption after annual profit in 2023 soared to its highest level yet, on the back of a record surge in passenger numbers.

The sister airline of Emirates posted a profit of Dh2.1 billion ($572 million), a jump of 75 per cent from the previous year, as revenue increased by nearly a quarter, flydubai said.

Total revenue rose 23 per cent on an annual basis to Dh11.2 billion last year.

The airline carried 13.8 million passengers from Dubai last year, an annual increase of 31 per cent, setting a record that exceeded its pre-pandemic level of 11 million.

“Building on the momentum from our previous strong performance, we continued to grow, surpassing all pre-pandemic levels,” said Ghaith Al Ghaith, flydubai’s chief executive.

Flydubai’s record profit comes after Dubai International Airport surpassed its pre-coronavirus annual passenger traffic last year when it handled nearly 87 million passengers, up 31.7 per cent annually, as it inched past the 86.4 million recorded in 2019.

International arrivals to Dubai rose by 19.4 per cent to 17.15 million, surpassing the 16.73 million visitors in 2019, according to its Department of Economy and Tourism.

Last year, flydubai added 13 new Boeing 737 aircraft to its fleet, increasing its capacity by 27 per cent to 40,292 million available seat kilometres, a measure of an airline’s seats multiplied by kilometres flown.

Flydubai ended 2023 with 84 aircraft, including 29 Boeing 737-800s, 52 737 Max 8s and three 737 Max 9 jets. Three Boeing 737-800 planes were returned to the lessors at the end of their lease agreement. “Ongoing challenges with the aircraft manufacturer’s delivery schedule have resulted in four fewer aircraft being delivered in 2023,” flydubai said.

Boeing has faced handover delays of its Max model amid production glitches and supply chain problems.

Flydubai signed a deal with Smartwings for six wet-leased aircraft to mitigate the delays in aircraft deliveries and meet the surge in travel demand.

A wet-lease arrangement is one in which the plane lessor maintains operational control of flights while providing aircraft and crew.

Flydubai also expanded its route network last year, launching 17 destinations and ending 2023 with a network of 122 destinations across 52 countries.

The airline recorded a 56 per cent annual rise in passenger numbers on its GCC network and a 36 per cent increase in Europe. Through flydubai’s six-year codeshare partnership with Emirates, the airlines carried 3.7 million passengers in 2023 across their joint network of 222 destinations.

Flydubai boosted its workforce to 5,545 employees, with more than 1,000 new recruits joining in 2023 across various departments.

Flydubai’s forward planning and 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”, Mr Al Ghaith said.

Flydubai will take delivery of 12 Boeing 737 Max aircraft this year, he said.

“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.”