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Fly Dubai Records 14.4% Passenger Growth

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By Modupe Gbadeyanka

The management of Fly Dubai has announced its Full-Year Results for 2016 reporting a profit of $8.6 million.

It has also reported total revenue of $1.37 billion, an increase of 2.4 percent compared to the same period last year.

The stronger second half, driven by increased passenger numbers, was impacted by downward pressure on yield leading to lower overall revenue growth reflecting a continuation of the same adverse factors reported in the first half.

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of flydubai, said: “these results see flydubai report its fifth consecutive full-year of profitability.

In 2012, our third year of operation, we carried 5.1 million passengers. This year, we have carried 10.4 million passengers demonstrating that flydubai continues to help change the way both business and leisure passengers travel around the region.

An established tourism destination and global centre for business together with the UAE’s geographic location has supported the need for increased connectivity.”

Ghaith Al Ghaith, Chief Executive Officer (CEO) of flydubai, reviewing the Annual Results for 2016, commented: “Over the last two years we have seen passenger traffic grow cumulatively by 52 percent in terms of RPKM.

“We continue to demonstrate that we gain loyal customers across our network who recognise the benefits of direct air links and enjoy our onboard offering.

“The continuation of mainly lower fuel prices and ongoing cost management efforts are reflected in the 16% improvement in terms of ASKM [2] over the last two years. We have however seen a difficult pricing and operating environment.”

Cost and revenue performance

EBITDAR was healthy at 21.1% of revenue; an improvement from the previous year’s figure of 20.5%.

The closing cash and cash equivalents position, including pre-delivery payments for future aircraft deliveries, remained strong at AED 2.3 billion.

Fuel costs were 25% of operating costs compared to 30.6% in the previous year, against a backdrop of lower fuel prices for the year, with legacy fuel hedges impacting only 21% of the volume for full year 2016.

Ancillary revenue comprising of baggage, cargo and inflight sales contributed 13.8% of revenue; dropping from 15.1% from the previous year.

Operational performance

Aircraft deliveries: 8 Next-Generation Boeing 737-800 aircraft joined the fleet in 2016 in support of network expansion. The average age of the fleet was 3 years 8.5 months.

Business Class: The growth in the number of flydubai’s Business Class passengers continued and saw the airline carry 2.4 times the number of passengers as in 2014. The Subcontinent saw the strongest demand for Business Class carrying more than double the number of passengers. This was followed by the Caucasus which grew by 88%, as a result of a liberalisation of the visa rules, creating an increased demand from both inbound and outbound traffic flows. In addition, Business Class passengers grew by 38% in Europe and 24% in the GCC and Middle East.

Network expansion: During the course of the year, increased flight frequency on existing routes and a maturing in the performance of the 41 new routes launched in 2014 and 2015 saw ASKM grow by 9%.

The launch, on 29 November, of flights to the popular destination of Bangkok was the first route outside of the GCC to start operations with a double daily service. Across the network, flydubai reported the following passenger flows:

    GCC & Middle East: flydubai carried 28% of all traffic between Dubai and the GCC and Middle East.

    Europe: passenger numbers in Europe grew by 19%.

    Russia: with 21 flights per week across 7 destinations passenger numbers increased by 3%.

    Ukraine: overall flydubai passenger numbers on flights between Ukraine and Dubai increased by 26%.

    Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan): its 5 points across the region saw flydubai contribute 23% of the total growth at Dubai airports.

    Subcontinent: passenger numbers on the flydubai network grew by 22%.

    Africa: passenger numbers from its 11 points grew by 3% and contributed 12% of the total growth at Dubai airports.

Al Maktoum International (DWC): flydubai has been operating from DWC since October 2015. With its two gateways, flydubai will continue to gradually increase its operations at DWC based on the further expansion of the airport.

Staff numbers: flydubai continued to grow its experienced team with a total of 3,773 staff including 746 pilots, 1,618 cabin crew and 282 engineers.

OPEN: flydubai launched its simple and straightforward rewards programme on 25 October 2016 and has been well received in the market.

Key Operating Figures

FZ981: following the tragic loss of FZ981 on 19 March 2016, flydubai remains focused on supporting the families who lost their loved ones. In addition to providing initial financial assistance payments and interim financial assistance payments, our Long Term Care Team continues to be available to the bereaved families who are our primary concern. Plans are being put in place for a memorial to mark the first year anniversary.

Ghaith Al Ghaith, CEO of flydubai, said: “flydubai continues, through its accredited representative, to support the investigation into the tragic accident. Our Long Term Family Assistance team continues to be available for all the families.”

Outlook

During 2017, flydubai will be the first airline in the Middle East to receive the new model Boeing 737 MAX 8 and the first of these aircraft will enter into service in the second half of the year. The overall capacity will not grow during 2017, as short term capacity needs are adjusted, due to the ongoing challenging operating environment. Since launch, one of the principles of flydubai’s fleet planning strategy was to maintain a young fleet. Under these plans, the airline will see the eight-year lease term expire for 4 Next-Generation Boeing 737-800 and during the year these aircraft will be retired from the fleet.

Ghaith Al Ghaith, CEO of flydubai, looking to the year ahead, said: “we will remain prudent throughout 2017 as we will continue to operate in a challenging socioeconomic environment. Yields will remain under pressure and we expect to report flat growth in the year ahead. We are looking forward to receiving the first Boeing 737 MAX 8 in the region which will bring further fuel and operating efficiency to our young modern fleet. We are focused on our strategy to lead in innovation, to provide an unrivalled experience on board and on the ground, as we continue to meet the travel demands of our passengers.”

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Travel/Tourism

Festive Travel Surge: FCCPC Flags Fare Manipulation by Airlines

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cool air travel

By Adedapo Adesanya

The Federal Competition and Consumer Protection Commission (FCCPC) says its investigation uncovered how airlines manipulated flight fares and fixed prices arbitrarily during the last Christmas and New Year’s holidays.

The findings, contained in an interim report released on Thursday by the commission’s department of surveillance and investigations, compared domestic airline pricing from the December 2025 festive period with post-peak January 2026 fare levels.

The FCCPC, in a statement signed by its director of corporate affairs, Mr Ondaje Ijagwu, said it established cases of price fixing by local airlines, documented abuse during the festive season, and would soon begin a probe of foreign airlines, following its ongoing country-wide investigation, which was announced earlier in January.

“A review undertaken by the Federal Competition and Consumer Protection Commission (FCCPC) has uncovered patterns of price manipulation perpetrated by some local airlines during the last festive season. The forensic exercise benefitted from data collated by the commission from airlines operating local routes in the country,” the report said.

The report compares domestic airline pricing from the December 2025 festive period with post-peak January 2026 fare levels.

The FCCPC’s preliminary analysis indicated that fares recorded during the December peak period were materially higher than those observed in the post-peak period across several routes despite relative stability in critical operating variables such as fuel price, government taxes and foreign exchange.

“The differences observed in fares therefore appear to reflect airlines’ arbitrary pricing decisions, including yield management and capacity allocation, rather than any variation in regulatory fees,” the report said.

It also noted that route-level analysis showed that higher fares coincided with periods of reduced seat availability during predictable seasonal demand peaks. On some high-density routes, peak fares were clustered within relatively narrow ranges across several operators.

It noted that on certain corridors, such as Abuja-Port Harcourt, peak fares were several times higher than corresponding post-peak levels. “On selected routes, the difference in the price of a single ticket reached approximately N405,000. Median fares across the sampled routes also rose markedly during the festive window when compared with post-peak benchmarks,” it said.

The report identified the relevance of Sections 59, 72, 107, 108, 124 and 127 of the Federal Competition and Consumer Protection Act 2018, which address the prohibition of agreements in restraint of competition, the prohibition of abuse of a dominant position, the offence of price-fixing, conspiracy to commit offences under the Act, the right to fair dealings, and the prohibition of unfair, unreasonable or unjust contract terms.

The FCCPC, however, recognised that seasonal demand pressures, scheduling constraints and fleet utilisation might also affect pricing during the peak travel period. It added that these actors remain under consideration as part of the commission’s ongoing review.

Commenting on the release of the interim report, the executive vice chairman and chief executive officer of the FCCPC, Tunji Bello, said the review was part of the commission’s statutory responsibility to promote competitive markets and safeguard consumers.

“This assessment is intended to provide clarity on pricing behaviour during predictable peak travel periods. The Commission’s role is not to disrupt legitimate commercial activity, but to ensure that market outcomes remain consistent with competition and consumer protection principles under the law,” Mr Bello said.

He noted that the commission was conducting further structural and route-level analysis before reaching any conclusions.

“It is important to emphasise that this is an interim report. Our next action will be dictated by the full facts established at the end of the review exercise. Then, the Commission will decide whether any regulatory guidance, engagement or enforcement steps are necessary, strictly in accordance with the law,” he said.

Bello further announced that foreign airlines would come under investigation by the FCCPC once the ongoing review of local airlines was concluded.

He noted that the probe of the foreign airlines would be in view of widespread complaints of exploitative fares they allegedly charge Nigerians on certain routes compared to fares in neighbouring countries of equal distance.

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Travel/Tourism

FAAN Traces Source of Lagos Airport Fire to Server Room

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lagos airport fire outbreak

By Modupe Gbadeyanka

The Federal Airports Authority of Nigeria (FAAN) has disclosed that the fire incident at Terminal 1 of the Murtala Muhammed International Airport (MMIA), Lagos, on Monday originated from the server room on the first floor of Terminal 1.

In a statement in the wee hours of Tuesday, the agency confirmed that six casualties were recorded, involving three males and three females.

“A total of six casualties, comprising three males and three females, were recorded, all of whom are in stable condition. One affected individual has been transferred to the FAAN Headquarters Hospital for further medical evaluation and remains stable,” a part of the statement said.

FAAN noted that emergency response operations remain active, with coordinated firefighting, rescue, and safety teams continuing containment and recovery efforts.

A crane was successfully deployed to support rescue operations at the Control Tower, and all 14 persons initially trapped have been safely rescued and fully evacuated from the facility, it added.

The organisation disclosed that as an additional safety precaution, the sixth floor of the affected facility has been completely evacuated to support ongoing emergency operations and risk mitigation, adding that the fire within the departure hall is now largely under control, while responders continue close monitoring to prevent any spread to adjoining sections of the terminal.

“In line with established safety protocols, the airspace remains temporarily closed,” it stated, confirming that all emergency procedures were promptly activated and continue to collaborate with relevant emergency and support agencies to safeguard lives, infrastructure, and operational integrity.

Also, the statement revealed that the Nigerian Airspace Management Agency (NAMA) is actively working to establish a temporary Control Tower to enable the safe and timely restoration of airport operations as soon as practicable.

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UK to Issue Digital Visas to Nigerian Travellers from February 25

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UK Visa

By Adedapo Adesanya

The United Kingdom says all Nigerian visitors to the country, who need a visa, will only get a digital visa from February 25, 2026.

In a statement, the UK Visas & Immigration said that from the scheduled date, all Nigerian nationals applying for a UK Visit visa will receive an eVisa, rather than a vignette (sticker) in their passport.

The shift also indicates that travellers will access their visa electronically through their UK Visas and Immigration (UKVI) account, marking a significant step in modernising the UK’s visa process.

For Nigerian applicants, the visa application requirements remain unchanged. Travellers will still apply as usual, attend a Visa Application Centre to provide biometric information, and meet all existing eligibility criteria. The only difference is how the visa is issued: instead of a physical sticker, applicants will receive a secure digital record of their immigration status.

According to a statement, the British government clarified that Nigerians currently holding a valid vignette sticker do not need to take any action. Their physical visa remains valid until it expires or requires replacement.

It added that the move to eVisas brings a number of benefits for Nigerian travellers, including passports being returned more quickly and travellers being able to manage their immigration status online at any time, from any location. The digital format offers stronger security as eVisas cannot be lost, stolen, or tampered with.

Welcoming the transition, British Deputy High Commissioner in Abuja, Mrs Gill Lever, said, “We are committed to making it easier for Nigerians to travel to the UK. This move to digital visas will streamline a key part of the visa process, making it more secure while reducing dependence on paper documents. We look forward to continuing to welcome Nigerian visitors, students, and workers to the UK.”

Once a visa is approved, applicants will need to create a free UKVI account to access the eVisa.

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