Flydubai yesterday said it swung to a loss in the first half of the year amid lower Russian demand, and the suspension of flights to Iraq, Yemen and parts of Ukraine.
The strengthening of the US dollar in the past year also weighed on the airline’s profitability.
Flydubai, also known as Dubai Aviation Corp, lost Dh147.4 million during the first half of the year. It had a profit of Dh53.1m in the first half of2014.
The company did not mention its third-quarter results in a financial statement posted on Nasdaq Dubai.
"Expanded military activity in the north of Iraq has disrupted the company's operations and saw flights to Erbil suspended at the beginning of the year, restarting towards the middle of the year and flights to Sulaimaniyah remain suspended," said flydubai.
The carrier also said traffic flows on Russian routes had declined because of that country’s economic downturn. Russia, one of the world’s largest producers of hydrocarbons, has been hit by the oil price slump since last year, and visits to the UAE by Russians and people from the former Soviet satellite states have declined as a result of the Russian rouble’s devaluation.
Conflicts in Ukraine and Yemen have also taken a toll on flydubai, as flights to Aden, Sanaa and Ukraine – with the exception of Kiev and Odessa – remain suspended. These flight disruptions have also affected the wider flight network.
“Due to the limitations of Yemeni airspace for commercial flights, the flight paths to some of the African destinations have changed, resulting in increased flight times and payload restrictions,” said the airline.
Despite the drop in profits, Flydubai said its revenue, including operating income, rose 8.7 per cent in the first half of the year to Dh2.2 billion from the same period last year.
It said revenue growth was subdued despite the 33.6 per cent increase in the airline’s flight capacity because of greater competition in mature markets and the appreciation of the US dollar, especially against emerging-markets currencies.
Even though flydubai is experiencing difficulties with some of its flight routes, it is pushing ahead with expansion. The airline said in August that it would increase flights from Al Maktoum International Airport from next Sunday.
Flydubai said it would operate flights to Amman, Beirut, Chittagong, Doha, Kathmandu, Kuwait and Muscat from the airport, while also continuing to fly to those destinations from Dubai International Airport.
Ghaith Al Ghaith, flydubai’s chief executive, said in August that the expansion of its routes would provide opportunities for growth as the airline takes delivery of more than 100 new Boeing aircraft by 2023.
mkassem@thenational.ae
Follow The National's Business section on Twitter
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
TO%20CATCH%20A%20KILLER
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EDamian%20Szifron%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Shailene%20Woodley%2C%20Ben%20Mendelsohn%2C%20Ralph%20Ineson%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A
