Dubai-based carrier flydubai has reported a historic profit of AED1.2 billion ($327 million) for 2022, an increase of 43 per cent compared to 2021, reflecting the carrier’s strong business model built on cost efficiency and agility.
Reporting the airline’s annual results for the year ending December 31, it said total annual revenues hit AED9.1 billion ($2.5 billion) compared to AED5.3 billion ($1.4 billion) in 2021, an increase of 72 per cent.
The airline carried 10.6 million passengers, an increase of 89 per cent compared to 2021. It took delivery of 17 new aircraft, a record number of deliveries received in one year.
The airline also hired 1,300 employees, the airline’s biggest recruitment drive in any year.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman of flydubai, said: “flydubai’s record performance for 2022 is a direct result of the carrier’s strong 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.
“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 testament to the exceptional contribution of its skilled team and the positive environment we operate in, 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 said.
Ghaith Al Ghaith, Chief Executive Officer at flydubai, said: “We realised early on the great opportunities that Dubai provides and remained focused and ready to scale up our operations once the demand for travel returned. Our resilient financial stance enabled us to maintain positive cash flows and not require the government aid that was available to us during the pandemic. 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.
“Navigating through challenging times characterised by continued fluctuating fuel prices, disruption to supply chains, rising global inflation and geopolitical unrest did not dampen our strong performance last year. 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. This is all due to the unwavering vision of the leadership of Dubai and the UAE, and the hard work and dedication of everyone at flydubai,” said Al Ghaith.
Other highlights of the results are:
* EBITDAR1 was reported at 28 per cent of annual revenue.
* Closing cash and cash equivalents position: including pre-delivery payments for future aircraft deliveries, is AED4.3 billion compared to AED3.8 billion last year.
* Fuel cost continues to be the single highest operating cost for the airline with 33.9 per cent of total annual operating costs, due to the substantial increase in fuel prices last year. The Boeing 737 MAX aircraft will continue to bring greater fuel efficiency to our growing fleet.
* Financing: during 2022, flydubai secured financing for 20 Boeing 737 MAX aircraft and 3 LEAP-1B engines through a combination of sale and leaseback and commercial debt financing.
* Network expansion: flydubai launched 16 routes and ended the year with a network of 114; reaffirming its commitment to strengthening direct airlinks from underserved markets in the region with Dubai.
* flydubai carried 10.6 million passengers across its network; an increase of 89 per cent compared to 2021. The airline continued to see increased demand on its popular seasonal summer routes: Batumi (BUS), Bodrum (BJV), Dubrovnik (DBV), Izmir (ADB), Mykonos (JMK), Santorini (JTR), Tivat (TIV) and Trabzon (TZX).
* Fleet size: flydubai took delivery of 17 new aircraft, a record number of deliveries received in one year in the history of the airline. Growing its fleet by 25 per cent compared to the previous year, the airline ended 2022 with 74 aircraft: 32 Next-Generation Boeing 737-800, 39 Boeing 737 MAX 8, and 3 Boeing 737 MAX 9 aircraft. Two Next-Generation Boeing 737-800 aircraft were returned to the lessors at the end of their operating lease.
