UAE LCC’s write red figures in 2018


(Posted 24th February 2019)

Both stand alone Air Arabia, based in Sharjah / UAE but also FlyDubai, closely associated with ‘big brother’ Emirates, have reportedly posted losses for the financial year 2018 of just under 160 million Dirham.
FlyDubai, which just dropped the unprofitable route extension from #Entebbe to Kinshasa – Entebbe is now being served again as a turnaround destination – carried 11 million passengers in 2018, just marginally up from the previous year. While revenues have grown by over 12 percent have cost escalated even further and in particular fuel cost have shot up by 5 percent, now standing at just under 30 percent of the overall cost structure.
The airline also quoted unfavourable exchange rates as an added reason why for the first time in 7 years FlyDubai had to show an annual loss.

Image result for Air arabia logo

Air Arabia, which flies from #Sharjah to #Nairobi, has posted a Dirham 609 million loss, compared to a Dirham 630 million profit a year ago, largely prompted by the collapse of private equity firm Abraaj but also caused by the cost rise in aviation fuel.

Both airlines have indicated cost cutting measures to return to profitability in 2019 but given the tense business climate in the aviation sector, this is far from being a certainty.

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