Flydubai to launch premium economy as it sheds low-cost origins

CEO expects 787 deliveries by the end of 2027, serving new routes and boosting flight frequencies

Ghaith Al Ghaith, chief executive of flydubai, dismissed the idea of buying more wide-body aircraft. Chris Whiteoak / The National

Flydubai plans to introduce a three-class configuration on its Boeing 787 Dreamliners, including premium economy seats for the first time, marking another step in the shift away from its low-cost origins.

The first 787 aircraft deliveries are expected to start by the end of 2027 to serve new routes and increase flight frequencies to existing destinations, Ghaith Al Ghaith, chief executive of flydubai, said at the Dubai Airshow.

“We've finalised the [cabin lay-out] plan. We definitely will have three classes … we will have business, premium economy and economy,” he said.

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“The premium economy, which I have no personal experience in selling or operating, but I hear very good news everywhere in the world about it.”

Mr Al Ghaith expects deliveries of the first 787s to start by the end of 2027. The airline placed the order for 30 Dreamliners in 2023 during the last Dubai Airshow.

The executive dismissed the idea of purchasing more wide-body aircraft from either manufacturer and was instead focused on the narrow-body fleet.

“This is the niche that we are created for and we have plenty of potential to realise,” he said.

A fly past by flydubai and Fursan Al Emarat on day three of Dubai Airshow 2025. Chris Whiteoak / The National

Flydubai currently has a fleet of 69 Boeing 737 Max and 27 Boeing 737-800 planes. From previous orders, it is still planning to take delivery of 115 more 737 Max planes and 30 of the 787-9s, its first wide-bodies.

Flydubai turned heads at Dubai Airshow when the all-Boeing fleet operator handed an order for 150 A321 Neo aircraft to the US plane maker's European rival Airbus. A day later, flydubai made a provisional order for 75 of Boeing's 737 Max jets, with options for another 75.

Longer range

Flydubai's decision to opt for A321 Neos was driven by the aircraft's availability, range and capacity needs. The model allows the airline to fly routes of up to nine hours, an extra two hours beyond the seven-hour range of the 737 Max it currently flies, as well as with 15 more seats more than the 737 Max 10, Mr Al Ghaith said.

“That combination, along with the cost of this aircraft and the efficiency of this aircraft, makes it the right aircraft for us,” he said.

The A321 Neo decision was also driven by the availability of the aircraft and the lack of clarity around the 737 Max 10. That model is yet to be certified.

This gave the A321 Neo “a head start” in flydubai's decision making, he said.

Mr Al Ghaith did not specify which versions of the A321 Neo and 737 Max but said there was flexibility in the new orders to make the selection in the future.

At the announcement of the A321 Neo order this week, Airbus chief executive Christian Scherer jokingly asked Mr Al Ghaith: “What took you so long?”

Responding to this at the press briefing on Wednesday, Mr Al Ghaith said: “Why don't you ask him why did it take him so long to give us what we need? It takes two to tango.”

Flydubai is growing its fleet as it prepares to move to the new terminal at Al Maktoum International Airport, a mega-hub that will also be the home base of its sister airline Emirates. The first phase of the new airport is scheduled to open in 2032 and handle 150 million passengers annually.

A flydubai display at Dubai Airshow. Reuters

Shedding the low-cost mantle

Flydubai has taken gradual steps to shift away from the low-cost model it started with when operations began in June 2009. It introduced business class seats, a business lounge and announced that all economy class fares will now include meals and in-flight entertainment.

This was a gradual and deliberate strategic shift.

“It was not like one day you are this and turn off the light and say I want to be that,” Mr Al Ghaith said. “It didn't happen like this, it was almost like trial and error.”

The evolution of its model was a success, he said. While costs to add premium products is high, the yields are also increasing.

Low-cost carriers in the US and Europe enjoy a single aviation market, without borders and with harmonised regulations. “Here, we have borders and we have restrictions on flying,” Mr Al Ghaith said. “There was a reality check for us … you cannot have open skies, one market, one law that fits all.”

It is also challenging in the region because of varying passenger needs. “Here we have different customers … and that's why low-cost in my opinion here does not work,” he added.

Asked about the potential of listing flydubai in the future, Mr Al Ghaith said that the airline is profitable and does not need to raise money from an initial public offering.