Flydubai losses widen to Dh142m in first half

Low-cost carrier Flydubai reported Dh142.5m in losses for H1 2017 Monday, with the figure widening from the Dh89.9m in losses reported in the same half of 2016. The airline attributed losses to higher fuel costs and pressure on yields. The losses came despite a 9.9% year-on-year rise in revenues, which reached Dh2.5b in H1 as an increase in passenger numbers gave a boost to revenues. Passenger numbers reached 5.4m, up 10.5% year-on-year. “The demand for travel on flydubai remains strong, and the airline has seen its overall market share grow. These factors have, however, been offset by the price performance determined by the market,” the airline said, adding: “The airline also faced comparatively higher fuel expenses during the reporting period, with fuel costs accounting for 24.8% of operating costs compared to 23.5% in the previous reporting period.” The losses at flydubai come as regional airlines face pressures because of slower demand, stronger competition, and political factors. In May, Emirates airline reported an 82% plunge in its profits year-on-year reaching as the carrier cited “a turbulent year for aviation and travel.” Flydubai said it will continue to focus efforts on three main areas; improving cost performance, broadening its distribution, and optimizing its network.<br/>