Connect with us

Travel/Tourism

Fly Dubai Records 14.4% Passenger Growth

Published

on

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.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Travel/Tourism

Air Tanzania to Commence Direct Flights to Moscow July 2

Published

on

air tanzania

By Kestér Kenn Klomegâh

To significantly boost economic diplomacy, trade, and tourism between Tanzania and Russia, Air Tanzania will commence direct flights from Dar es Salaam and Zanzibar to Moscow, the capital of Russia, from July 2, 2026.

Early June, the President of Tanzania, Ms Samia Suluhu Hassan, and her delegation were in Moscow and St Petersburg’s SPIEF-2026, at the invitation of Russian leader Vladimir Putin. One of the dominant topics discussed by the two parties was tourism. This was a follow-up to earlier visits by Russian delegations to Tanzania on the matter.

The sides noted that the country is well-positioned to become a more attractive destination for Russian tourists. The Russian party also offered help in promoting Tanzanian tourist products on the Russian market, organising business meetings with Russian travel agents and presenting the tourist potential at Russia’s tourist forums.

The Russian Federal Air Transport Agency, Rosaviatsiya, sent an authorisation to Air Tanzania for making flights over the route of Dar es Salaam – Moscow. “Rosaviatsiya received an application from the Tanzanian national air carrier, Air Tanzania, to make flights on the route of Dar es Salaam – Moscow. The issue was promptly considered, and the authorisation for flights was already sent to the airline. Air Tanzania did not make flights to Russia before,” Russian Transport Minister Andrey Nikitin told Russian reporters.

Tanzania has been a popular tourist destination for Russian tourists for years, particularly Zanzibar. “Unfortunately, during the pandemic, the number fell sharply, and now we are trying to increase it again. But to increase the number of tourists, we need several factors to be in place. The most important thing to do to bring back the number of tourists to a high level is to establish direct flights from Russia to Tanzania,” Russian Ambassador to Tanzania, Andrey Avetisyan, explained in an interview with The Citizen newspaper.

The key operational and news details include:

Launch Date: Direct flights officially begin on July 2, 2026, marking a massive milestone for African-Eurasian travel.

Frequency: Air Tanzania will operate three weekly flights between Tanzania and Moscow (departing on Mondays, Wednesdays, and Fridays). The journey time will be 8 hours and 30 minutes.

The Route: From Moscow, the flights will operate from Vnukovo airport. Using the Boeing 787 Dreamliner aircraft, planes will fly between Dar es Salaam, Zanzibar, and Moscow, with initial discussions highlighting a strategic stop in the Seychelles for refuelling.

Tanzania has hit a record in terms of the number of foreign tourists. By facilitating this travel arrangement, Russia and Tanzania have taken a significant step forward in establishing connectivity with the Island, well-known for recreation. Welcomed by East African entrepreneurs, this policy initiative indicates broader efforts to promote a more interconnected and open Africa.

In 2024, the country accepted more than 1.5 million guests on its territory. According to tourism experts, the new development will likely go beyond the traditional recreation, to create grounds for expansion and diversification of its various types of tourism, including medical, sports and business tourism.

Zanzibar, off Tanzania’s coast, is one of East Africa’s most popular tourist destinations and attracts visitors from Europe and North America. In addition, Zanzibar is now attracting Russian tourists. “We look forward to the emerging tourism dynamics, future collaboration between the two countries,” says Tour Operator Karina Yefimova at the “Let’s Travel” forum in June 2026.

With an estimated population of 1.9 million people, Zanzibar is a Tanzanian archipelago off the coast of East Africa. It is located in the Indian Ocean, and consists of many small islands and two large ones: Unguja (the main island, referred to informally as Zanzibar) and Pemba Island.

Continue Reading

Travel/Tourism

Airlines Fault Claims of Unpaid NCAA Regulatory Fees

Published

on

Modular Refinery for Aviation Fuel

By Adedapo Adesanya

The Airline Operators of Nigeria (AON) has denied owing cost recovery charges to the Nigeria Civil Aviation Authority (NCAA), insisting that all services rendered by the regulator to domestic airline operators are paid for fully in advance on a cash-before-service basis.

In a statement from the airlines’ body, it was emphasised that no domestic airline in Nigeria receives NCAA regulatory services without first making full payment of invoices issued to it by the agency, describing suggestions of the indebtedness for regulatory services as factually inaccurate.

It said that what the NCAA refers to as ‘outstanding charges’ relates solely to the 5 per cent Ticket Sales Charge (TSC), a tax imposed by the NCAA on passengers, which it said is not in consonance with the dictates of international aviation.

The AON then urged the federal government to urgently amend the Civil Aviation Act to empower the NCAA to collect whatever appropriate fees and charges are due it directly from passengers or whoever else, without routing such through the domestic airlines, from June 1, 2026.

It said doing this will relieve domestic airlines of the financial burden of acting as collection agents for the NCAA, since airlines currently bear banking transfer charges and other transaction costs in the process of transmitting funds to the organisation.

The airline body reiterated its position that the NCAA is a regulator, not a revenue-generating agency and that it does not fund any aspect of the airline businesses or render any direct service to passengers.

The AON said every service the agency provides to airline operators is fully paid for in advance before it is rendered.

“The AON notes that several member airlines maintain dedicated accounts, from which the NCAA draws down its monthly remittances, until the force majure caused by the Iran-Israel/USA conflict, which had put a lot of financial pressure on airlines worldwide.

“Notwithstanding this arrangement, the AON had formally appealed to the federal government through the office of the Minister of Aviation and Aerospace Development, to suspend the payment of all statutory charges temporarily, as an interim measure to assist airlines in managing their cash flows during the current period of severe financial stress caused by the increase in the cost of Jet A1.

“As an interim response, President Bola Tinubu graciously granted a 30 per cent concession while waiting for the government’s decision on the other aspects of the AON intervention request.

“While the AON acknowledges and appreciates this gesture, we had appealed for a meeting with Mr President to discuss further reliefs, a request that is yet to be granted,” the AON said.

Speaking further on reports that airlines owe billions in debt to the NCAA, the AON said the 5 per cent Ticket Service Charge in question was introduced over 45 years ago under the Government of General Gowon by the then Federal Civil Aviation Authority (FCAA) and its continued relevance has not been reviewed ever since.

It further stated that domestic airlines, in addition to the 5 per cent TSC, still pay separately ànd directly for services provided by the various industry agencies, including the NCAA itself.

AON said that the 5 per cent TSC is an ad valorem tax applied to an airline’s gross earnings, not profits and that the global aviation industry operates at a profit margin of between 1.5 per cent and 2.5 per cent at best.

“The AON remains committed to constructive engagement with the government and all stakeholders to achieve a growth-oriented sector, designed to enable the accelerated growth of key sectors of the economy and the improvement and sustenance of a healthy quality of life for the citizenry,” it said.

Continue Reading

Travel/Tourism

Airline Remittances: NCAA Halts Enforcement of ‘No Pay, No Service’ Policy

Published

on

NCAA

By Adedapo Adesanya

The Nigeria Civil Aviation Authority (NCAA) has announced the temporary suspension of its “no pay, no service” directive earlier issued to airlines with outstanding statutory remittances, citing ongoing consultations and prevailing operational challenges in the aviation sector.

In a statement, the authority said the decision followed a review of industry conditions, particularly the rising cost of aviation fuel, which has placed significant financial pressure on domestic carriers and threatens overall sector stability.

However, the NCAA stressed that the suspension does not amount to a waiver, cancellation, or forgiveness of the debts owed by the affected airlines, noting that such decisions fall outside its regulatory mandate.

The agency recalled that President Bola  Tinubu had earlier approved a 30 per cent discount on outstanding statutory charges owed by domestic airlines to aviation agencies, as part of broader government efforts to cushion the impact of high Jet A1 fuel costs and stabilise the industry.

According to the NCAA, airlines remain fully responsible for settling their obligations, adding that it would engage operators individually to ensure compliance through structured repayment arrangements that do not disrupt operations.

The regulator also clarified the nature of the 5 per cent Ticket and Cargo Sales Charge, describing it as a statutory levy mandated by the Civil Aviation Act and embedded in the cost of air travel and cargo services.

It explained that the charge is collected by airlines at the point of ticket and cargo sales on behalf of the aviation system and must be remitted accordingly.

The organisation emphasised that the funds do not constitute revenue or profit for the airlines and should not be treated as such.

It further noted that the revenue from these charges is distributed among key aviation institutions, including the regulator itself and other service providers, all of which play vital roles in ensuring safe, efficient, and internationally compliant aviation operations.

It added that the NCAA operates on a cost-recovery basis and does not receive direct funding from the Federal Government for its routine regulatory activities, making timely remittance of statutory charges critical to sustaining its oversight functions.

The suspension of the enforcement directive, it said, is a measured step aimed at maintaining operational stability in the sector while reinforcing the obligation of airlines to remit collected charges.

The NCAA reaffirmed its commitment to balancing regulatory enforcement with industry sustainability, warning that statutory funds already collected must be remitted for their intended purposes.

Continue Reading

Trending