Home Business Flydubai swings loss due to growing fuel costs and interest rates

Flydubai swings loss due to growing fuel costs and interest rates

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Flydubai incurred a big loss costing approximately Dhs160m ($43.5m) for 2018, as it claimed on Wednesday, citing higher fuel costs and adverse currency moves.

The state-owned Dubai airline, which made a profit of Dhs37.3m in 2017, said fuel costs totaled for 29.8 percent of operating costs last year in contrast with 25 percent the previous year.

Although the number of passengers increased to 11 million from 10.9 million in 2017, the airline said it had also been hit by mounting interest rates.

Flydubai has $500m in outstanding Islamic bonds payable in November and lately requested the banks for a $300m loan for airplane payments, Reuters reported last month.

According to Refinitiv statistics, the business also has about $230m in outstanding debt due in 2025.

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