The Dubai-based budget carrier FlyDubai saw record profits of $572 million in 2023, boosted by carrying the most passengers ever across its network, the company announced Thursday. The state-owned carrier, based in the business and tourism hub of Dubai in the United Arab Emirates, reported revenue of $3 billion, compared to $2.5 billion the year before. “Building on the momentum from our previous strong performance, we continued to grow surpassing all pre-pandemic levels to achieve the most profitable year in the history of the airline,” Ghaith al-Ghaith, FlyDubai's CEO, said in a statement.
Shukor Yusof, an analyst with Singapore-based Endau Analytics, told AFP the merger was "natural", but could be a sign of a downturn in the region s aviation sector. Fernandes, a flamboyant former music industry executive, launched AirAsia as a low-cost airline flying to secondary cities in Southeast Asia, shaking up the region s aviation sector and inspiring a slew of competitors.
Malaysia’s Capital A intends to sell its aviation business to long-haul unit AirAsia to consolidate long and short-haul operations under a single AirAsia brand, as CEO Tony Fernandes hints at retirement.
US ultra-low cost carriers Frontier and Spirit face financial struggles, raising questions about the viability of their business model amid market shifts and potential mergers.