FlyDubai reported a loss of $194 million in 2020
The UAE government-owned budget airliner FlyDubai reported a loss of $194 million in 2020. Due to the pandemic, the airline suspended its operation in March 2020 before restarting in mid-year.
“The Covid-19 pandemic has impacted us more than any other crisis. We fully recognize that it is the priority of governments to ensure the health and wellbeing of their people. The effects of the travel restrictions that were put in place to safeguard against transmission of the virus have heavily impacted the aviation industry,” - Ghaith Al Ghaith, Chief Executive Officer at flydubai.
Travel demand plummeted following the impact of the pandemic which saw countries all across the world closed their borders that resulted in a halt in passenger flights. Many airlines were grounded including FlyDubai.
The grounding of the 737 MAX was another major factor contributing to the loss as the airline was required to carry out an active storage program which required 18 hours of maintenance per aircraft each week.
Before the pandemic, the airline was operating to 47 countries with a fleet of 54 aircraft and generated a profit of $53.9 million in 2019.