flydubai, the Dubai-based carrier, revealed unprecedented annual outcomes for the financial year concluding on December 31, 2023, signifying the airline’s most remarkable performance to date.
HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman of flydubai, said: “In its 15th year of operations, flydubai has emerged as one of the key players in the UAE’s aviation industry and a major contributor to Dubai’s economy. Its solid business model has enabled the carrier to grow exponentially even during challenging times, doubling its operating fleet and expanding its network since the pandemic.
The airline’s exceptional results stem from the visionary leadership of the UAE and the strategic policies of His Highness Sheikh Mohammed bin Rashid Al Maktoum. These policies have fostered the aviation industry’s growth, with FlyDubai playing a pivotal role.
During the pandemic, FlyDubai made strategic decisions to accelerate aircraft deliveries and expand its network ambitiously. These moves, alongside preserving its workforce, have culminated in the carrier’s strongest performance yet.
His Highness Sheikh Ahmed bin Saeed Al Maktoum expressed pride in the team’s efforts. He emphasized FlyDubai’s ongoing contribution to Dubai’s global prominence in trade, tourism, and aviation.
Ghaith Al Ghaith, CEO of FlyDubai, reflected on the airline’s historic profitability in 2023. The company surpassed pre-pandemic levels, fueled by leadership confidence and a commitment to connecting underserved markets.
With over 108 million passengers since its first flight in 2009, FlyDubai’s success underscores its appeal and dedication to customer satisfaction. The airline’s record-breaking year is a testament to its team’s hard work and the strategic vision that propels it forward.
Cost and revenue performance
EBITDAR1: was reported at 33% of annual revenue.
Closing cash and cash equivalents position: including pre-delivery payments for future aircraft deliveries, is AED 4.8 billion compared to AED 4.3 billion last year.
Fuel cost: continues to be the single highest operating cost for the airline accounting for 32% of total annual operating costs, due to elevated fuel prices. The airline continues to explore fuel hedging options and last year it hedged 12% of its fuel requirement.
Operational performance
Network expansion: flydubai launched 17 routes and ended 2023 with a network of 122 destinations in 52 countries including Ashgabat, Cairo Sphinx, Corfu (seasonal), Kabul, Milan, Mogadishu, Neom, Olbia (seasonal), Poznań, Shymkent and St. Petersburg. The launch of operations to Krabi and Pattaya in Thailand marked flydubai’s return to Southeast Asia.
flydubai carried 13.8 million passengers across its network; an increase of 31% compared to 2022. The carrier recorded an increase of 32% in demand for Business Class in the GCC as well as Central Asia and the Caucasus. flydubai recorded a 56% year-on-year increase in passenger numbers on its GCC network and a 36% increase in Europe.
Fleet size: flydubai took delivery of 13 new aircraft and ended 2023 with 84 aircraft: 29 Next-Generation Boeing 737-800, 52 Boeing 737 MAX 8, and 03 Boeing 737 MAX 9 aircraft. Three Next-Generation Boeing 737-800 aircraft were returned to the lessors at the end of their lease term.
flydubai’s 737 MAX 8 aircraft is 14% more fuel efficient than its predecessor and has enabled the airline to reduce its average fuel burn per block hour by 1.3% year-on-year.
Ongoing challenges with the aircraft manufacturer’s delivery schedule have resulted in four fewer aircraft being delivered in 2023. To mitigate the delays in aircraft deliveries and to meet the surge in demand for travel and add capacity, particularly during peak travel periods, flydubai entered another Aircraft, Crew, Maintenance and Insurance (ACMI) agreement with Smartwings for six wet-leased aircraft.
At the Dubai Airshow 2023, flydubai placed a USD 11 billion order for 30 Boeing 787 Dreamliners to be delivered from 2026. This marked the airline’s first wide-body order, diversifying its current fleet of all-Boeing 737 aircraft.
Codeshare partnership with Emirates: in its sixth year, Emirates and flydubai’s strategic partnership has enabled more than 3.7 million passengers in 2023 to enjoy seamless connectivity across the joint network of 222 destinations.
Recruitment: flydubai’s workforce reached 5,545 employees with more than 1,000 new colleagues joining in 2023 across various departments, 73% of the new joiners were pilots, cabin crew and engineers to support the airline’s growing fleet and network. The carrier more than doubled the number of UAE Nationals in its workforce, attracting more skilled young UAE Nationals to join its cadet, engineering and work placement programmes across the business.
Key performance and operational figures
Key performance figures for: | Reporting period for |
Total annual revenue | AED 11.2 billion (USD 3 billion) |
Total annual profit | AED 2.1 billion (USD 572 million) |
Total cash assets, including pre-delivery payments | AED 4.8 billion |
RPKM2 (% growth) | 29.7% |
ASKM3 (million) | 40,292 (27% increase compared to 2022) |
Passenger numbers | 13.8 million (31% increase compared to 2022) |
Fuel costs | 32% |
Fleet size | 84 |
Average aircraft age | 4.5 years |
Total number of departures | 107,862 (24% increase compared to 2022) |
Total number of employees | 5,545 |
Total number of destinations | 122 |
Outlook statement for 2024
Ghaith Al Ghaith, Chief Executive Officer at flydubai, commenting on the outlook for 2024, said:
“we are dedicated to supporting the Dubai Economic Agenda D33 to solidify its position as one of the world’s top three cities for tourism and business over the next decade. We will continue with our strategic network development plans that will see more destinations join the flydubai network this year starting with the five new routes announced since the start of 2024 including Basel, Riga, Sochi, Tallinn and Vilnius.
Additionally, we will take delivery of 12 Boeing 737 MAX aircraft allowing us to add capacity on existing routes as demand for travel across our network returns to pre-pandemic levels.
Looking ahead, we are renewing our commitment to further enhancing our customer experience and providing the right product at the right time. 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.
Since our inception, efficiency and sustainability have been core values for flydubai. We are committed to supporting the UAE’s plans to achieve net zero by 2050 and this year we will continue to identify areas across the business to enhance our sustainability efforts complementing the fuel and carbon emissions reduction that our fleet of Boeing 737 MAXs provides.
flydubai’s agility, forward planning, as well as its 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.
Our commitment to innovation, operational efficiency and customer-centricity will remain the focal points in the coming years as we lay the foundations for another chapter of our journey marked by the arrival of the first wide-body aircraft from 2026.”
1Earnings Before Interest, Taxes, Depreciation, Amortisation and Rent
2RPKM: Revenue Passenger Kilometre
3ASKM: Available Seat Kilometre
