Flydubai swings to loss on rising fuel costs and interest rates

Flydubai swung to a loss of almost Dhs160m ($43.5m) for 2018, it said on Wednesday, citing higher fuel costs and unfavourable currency moves.

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

Though passenger numbers rose to 11 million from 10.9 million in 2017, the airline said it had also been hit by rising interest rates.

Flydubai has $500m in outstanding Islamic bonds due in November and recently asked banks for a $300m loan for aircraft payments, Reuters reported last month.

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