Flydubai expands fleet with 30 Boeing 787-9 Dreamliners

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Flydubai expands fleet with 30 Boeing 787-9 Dreamliners
Credit: © Reuters.

DUBAI - In a significant expansion move, Dubai-based airline flydubai and American aircraft manufacturer Boeing (NYSE: BA ) announced at the Dubai Airshow today a deal for 30 Boeing 787-9 Dreamliners. This strategic acquisition marks flydubai's foray into widebody aircraft as the carrier seeks to enhance its service offerings and meet growing passenger demand.

The agreement is a pivotal step in flydubai's growth strategy, allowing the airline to launch new routes and increase capacity on existing ones. The Boeing 787-9 Dreamliner is celebrated for its operational efficiency and fuel economy, capable of carrying 296 passengers across distances of up to 14,010 km (7,565 nautical miles). Since its introduction, the Dreamliner has enabled the launch of over 380 new nonstop international routes.

Flydubai's current all-737 fleet consists of 79 airplanes, with an additional backlog of 137 orders. With this latest deal, flydubai is poised to become a major player in the Middle East's aviation market, which is expected to see its airplane fleet double over the next twenty years. The region is increasingly becoming an international air transit hub, with about half of future aircraft deliveries anticipated to be widebody jets like the Dreamliner.

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of flydubai, expressed the airline's dedication to supporting Dubai's status as a global aviation hub and achieving its expansion objectives. Ghaith Al Ghaith, CEO of flydubai, along with Stan Deal, CEO of Boeing Commercial Airplanes, highlighted the Dreamliner's operational excellence, fuel efficiency, and passenger appeal as key factors in their decision-making process. These attributes are well-aligned with flydubai's ambitions for growth and operational enhancement.

The new widebody jets are set to play a critical role in flydubai's acquisition strategy as it diversifies beyond its current single-aisle fleet. This move underscores the airline's commitment to evolving in response to dynamic market conditions and passenger needs while contributing to the broader development of Dubai's aviation industry.

InvestingPro Insights

As Boeing, a prominent player in the Aerospace & Defense industry, navigates a challenging landscape, it's worth noting that the company's revenue growth has been accelerating, with a significant 23.34% increase over the last twelve months as of Q3 2023. This upward trend is a positive sign for investors and could be a testament to the company's resilience and strategic initiatives, such as the recent deal with flydubai.

However, InvestingPro Tips suggest that Boeing is currently not profitable and is trading at high EBIT and EBITDA valuation multiples. The company's gross profit margins have been weak, standing at 11.44% in Q3 2023. Additionally, the price of Boeing's stock has fallen significantly over the last three months, by 16.57%, which might concern some investors.

Despite these challenges, Boeing's market cap remains impressive at $118.97 billion, demonstrating the company's substantial presence in the industry. The company's performance and future outlook should be considered in light of these InvestingPro Tips and data.

InvestingPro offers numerous other tips and real-time data metrics for companies like Boeing, which can provide valuable insights for investors and help guide their decision-making process.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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