Flydubai warns ticket prices may stay high despite easing costs

• CEO says jet fuel hikes are ‘manageable’
• But costs are passed on to passengers
• Flydubai expects to remain profitable

Flydubai has raised ticket prices to reflect a “significant but manageable” rise in jet fuel and operating costs due to the Iran war, CEO Ghaith Al Ghaith has said. But he warned that fares may not fall as quickly if cost pressures ease.

“Your fare has to reflect your cost,” Al Ghaith said during a media roundtable at the Arabian Travel Market. “Whenever the costs increase – in this case the fuel – our fares are reflecting the fuel price.”

Longer journeys burn more fuel, raise crew costs and reduce aircraft utilisation, even as the price per gallon begins to fall.

The International Air Transport Association (Iata) expects jet fuel to account for 31.4 percent of global airline operating expenses in 2026, up from 25.4 percent last year. The industry’s fuel bill is forecast to reach $350 billion.

Iata’s forecast is based on an average Brent crude price of $95 a barrel for 2026, up 37 percent from $69 last year. Brent was trading at about $108.16 a barrel on Wednesday, according to Reuters.

Since the start of the war, Middle East airlines have been forced to reroute around closed or restricted airspace. In August, Flydubai confirmed it had resumed flights over Iranian airspace to Baku in Azerbaijan.

“The fuel is the biggest headache,” Al Ghaith said. “We raised our price and of course we also worked with our partners.”

He said airlines had to pass higher costs on to customers to protect returns.

“This is a hard reality of making business because otherwise you are not maximising the benefits to your shareholders,” he said.

Despite the disruption, Flydubai, which reported a AED1.9 billion ($517 million) profit after tax for 2025, is expected to remain profitable this year.

“We always work on a target that we will make money. This is always in our DNA,” Al Ghaith said.

He added that the carrier had made no redundancies during the conflict and was continuing to hire.

Flydubai has restored operations to about 85 percent of its network. Al Ghaith said he was confident that “full recovery is round the corner”.

Further reading:

• Flydubai returns to Iranian airspace for first time since start of war
• Flydubai fleet expansion dents profits
• Middle East airlines in profile

The airline expects to return to pre-war capacity levels before the end of the year, with 11 new aircraft scheduled for delivery between now and the end of 2026.

But a full recovery in capacity does not necessarily mean cheaper tickets.

“In my experience from the past, in this region we have reached maturity in that sometimes price does not go back as fast,” Al Ghaith said.

Flydubai serves 125 destinations across 56 countries. Al Ghaith said the network could expand further if countries relaxed travel advisories warning against visits to the Gulf because of the conflict.

“The sooner they are lifted, the faster the recovery will come,” he said.