Soaring jet fuel prices, international travel advisories and aircraft delivery delays are frustrating flydubai's growth plans, with higher fuel costs being passed on to customers.
The airline has hedged a “big part” of its position against higher jet fuel prices. Still, the rising costs are reflected in its air fares, chief executive Ghaith Al Ghaith said at Arabian Travel Market in Dubai on Wednesday.
Jet fuel is the “biggest headache” because sudden price swings make it hard to cash in on higher air fares due to the fuel market's unpredictability, he added.
“Your fare has to reflect your cost,” Mr Al Ghaith said. “Whenever the costs increase – in this case, the fuel – our fares are reflecting the fuel price.”
The majority of Flydubai's aircraft deliveries have also been postponed to year-end, with its Boeing 787s coming in 2028 after repeated delays in 2026 and 2027, leading to added costs in terms of crew training and route openings.
The jet delays have not offered operational relief during the travel disruptions from the Iran war, he said.
“We are totally not seeing any benefits from aircraft delays because we want to be at full capacity to start business when it comes back with a vengeance,” Mr Al Ghaith said.
The travel advisories imposed by some western governments on several Middle East countries during the regional conflict are having a “big negative” impact on inbound travel, particularly from Europe, he said.
“We believe that as soon as all of these restrictions are lifted, the traffic will come back,” Mr Al Ghaith said.
Growth outlook
The airline boss is optimistic about the airline's recovery from the seven-month conflict, betting that demand will return quickly once restrictions ease.
Flydubai is already operating at 85 per cent of its capacity and expects to return to prewar levels, or exceed them, by the end of 2026 as it takes delivery of 11 aircraft.
“We really had a very good summer; it encourages us that a full recovery is around the corner,” he said. The airline now flies to 130 destinations out of its prewar network of 140.
Markets such as Eastern Europe are recovering faster than others, with forward bookings “almost back to normal”.
“Our biggest disadvantage currently, especially in Europe, is all of these advisories that are still ongoing,” he said.
Mr Ghaith said the airline was not behind its prewar growth target.
“We are taking all the aircraft that we are supposed to take; we are manning up for this operation because you have to be ready for the day after when the business will come, and it will come with a vengeance.”
The airline still expects to make a profit despite the higher costs and travel disruptions, with no redundancies and continued hiring.
“We always work on a target that we will make money. This is always in our DNA,” he said. “Our cash flow is as strong as it was before the war.”
Mr Ghaith declined to quantify the cost of seven-month war disruptions, saying it is “significant but it is manageable”.
“If we end up making money, even a little money, and sustaining our size, that is a target, because then when the business comes back, you will be bigger to absorb most of it,” he said.
In 2027, Flydubai plans to take delivery of up to 17 aircraft. “We are very confident that it will be a great year for us,” Mr Al Ghaith said.
Looking ahead, the airline continues to invest in its long-term growth with an order book of 300 planes, a focus on expanding its premium products and a recent foray into cargo.
Its incoming Boeing 787s and Airbus A321 jet deliveries will open new destinations, with China a “big part” of its future plans, Mr Al Ghaith said.
