flydubai Posts $674 Million Pre-Tax Profit in 2024

Dubai-based low cost carrier flydubai on Monday said it has recorded the best strongest-ever financial performance in its 15-year history with a pre-tax profit of $674 million, a 16% growth compared to the previous financial year.

Driven by the strength of flydubai’s diverse network as well as its strong and agile business model, the total revenue stood at $3.5 billion, marking an increase of 15% compared to $3 billion in 2023, the airline said.

flydubai Chairman Sheikh Ahmed bin Saeed Al Maktoum said that the airline continues to push boundaries and reach new milestones y-o-y and has emerged as a key player in the aviation industry in Dubai and the region.

“Its business model is built on solid foundations and an unwavering commitment to supporting Dubai’s economic and tourism vision. Forging invaluable air links to underserved markets has supported Dubai’s thriving aviation hub, making Dubai one of the most accessible and connected cities in the world. We have seen evidence of the positive impact flydubai has in the markets it operates to, stimulating free flows of trade and tourism and acting as a lifeline during challenging times,” he said.

H H Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, said that flydubai was well-placed for continued growth and success in the next chapter of its journey as it expanded its horizons and operations, continued to invest in innovation and delivers an enhanced customer experience over the coming years.

flydubai reported a y-o-y increase of 15% in its EBITDA at $1.1 billion, reflecting the business’s strong focus on operational and cost efficiency, digitalisation and ongoing investment in enhancing customer experience.

Fuel cost accounted for 28% of operating costs in 2024 compared with 32% in 2023, due to a lower average fuel price. The airline reported a closing cash and bank balance (including pre-delivery payments) of $1.3 billion.

The airline carried 15.4 million passengers in 2024, up 11% compared with previous year. Overall capacity, measured in Available Seat Kilometres (ASKM), increased by 10%, Passenger Load Factor increased by 1.2 percentage points and Passenger Yield improved with an increase of 1%.

This was driven by increased demand for both business and leisure travel around its network. flydubai’s Business Class offering continued to attract more customers, recording an 18% increase in uptake across its network, carrying almost half a million passengers in 2024.

flydubai CEO Ghaith Al Ghaith said that the record-breaking financial performance, for the fourth consecutive year, demonstrated their ability to grow our business and navigate difficult economic and geopolitical challenges through forward planning, drawing on their strength to adapt and evolve to the changing market and customer needs.

Growing Network

Despite its reduced expansion plans, flydubai grew its network in 2024 to 131 destinations in 55 countries, 97 of which were underserved markets. The carrier reinstated two operations to Al Jouf in Saudi Arabia and Sochi in Russia.

Furthermore, it added 10 new destinations including Basel in Switzerland, Bhairahawa in Nepal, Islamabad and Lahore in Pakistan, Kerman and Kish Island in Iran, Langkawi and Penang in Malaysia, Mombasa in Kenya as well as The Red Sea in Saudi Arabia. Seasonal summer operations, between June and the end of September, continued to attract more passengers to the carrier’s nine destinations on offer.

Fleet Strength

The number of fleet by the end of December was 88, with an average fleet age of 5.3 years. Four Boeing 737 MAX 8 aircraft were delivered in the first half of 2024, which were from the backlog of previous years and faced extensive delays.

flydubai did not receive any of the aircraft that were contractually scheduled to be delivered in 2024 due to ongoing challenges with Boeing’s delivery schedule. The carrier extended the lease on four Next-Generation Boeing 737-800 aircraft which were scheduled to be returned to the lessors.

flydubai’s current order book stands at 127 Boeing 737 aircraft to be delivered over the next decade in addition to 30 Boeing 787 Dreamliners, following its first wide-body aircraft order valued at USD 11 billion, starting from 2027.

flydubai will receive 12 new Boeing 737s in 2025 to continue growing its fleet, replace some of its existing aircraft and support its network expansion plans.