The carrier expanded operations amid lower fuel costs which drove ticket airline prices down, making flying with conventional carriers more attractive.

Flydubai said in an e-mailed statement that it earned in 2015 a net profit of 27.4 million U.S. dollars, down from 68.11 million dollars the previous year.

Flydubai, the UAE`s second budget carrier, added that the overall yield, with respect to revenue passenger km, was pressured by the strong dollar, challenging market environment across the network and disruption from flight suspension on some established routes, among other factors.

In January 2015, Flydubai suspended services to Baghdad for almost a week following a shooting incident there.

In addition, passenger numbers between Russia and Dubai decreased by 22 percent, reflecting the current economic situation in the Eurasian country.

Ghaith Al Ghaith, Flydubai CEO, said regarding Flydubai`s cost performance, "The solid foundation we established when launching the airline ensured that we are best positioned to swiftly respond to challenging socio-economic aspects, both in the short and long terms."

Flydubai added 18 new destinations to its network last year, as lower oil prices increased business for established carriers.

Dubai`s Emirates Airline, for example, reported a 65 percent increase in net profits for its last half-year ending September 30, amounting to 849 million dollars, which the airline said reflected "the impact of lower fuel prices, in addition to the airline`s continued ability to attract passengers in line with significant capacity growth."

Oil prices fell from over 110 dollars a barrel (159 liter) in mid-2014 to around 30 dollars a barrel currently, due to Iran`s entry into the oil export market as well as the shale oil boom in North America and elsewhere.

Earlier in the week, Flydubai`s domestic rival, Air Arabia from Sharjah, said its 2015 net income fell six percent year-on- year.

Air Arabia added 23 routes in 2015, including China`s Western city of Urumqi, the capital of Xinjiang Uyghur`s Autonomous Region.

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