Dubai: Flydubai reported on Tuesday a 12.3 per cent increase in net profit for 2014, down on the previous years 47 per cent profit growth.

The discount carrier made Dh250 million ($68 million) between January 1 and December 31, 2014 compared to the Dh222.8 million profit it reported a year earlier.

Revenue rose 19.1 per cent from Dh3.7 billion in 2013 to Dh4.4 billion in 2014, according to an airline statement. Revenue margins were down compared to the 33 per cent year-on-year growth in 2013.

A flydubai spokesperson told Gulf News by email that the airlines performance “was consistent with expectations.”

A total of 23 new routes were added in 2014, lifting the network to 86 destinations. Flydubai now operates 1,400 weekly flights.

“New routes are typically unprofitable in the first few months or even year. The number of new routes grew far faster than passengers or capacity,” said Will Horton, senior analyst at CAPA Centre for Aviation, by email.

“Gains from those new routes will likely flow through more strongly in the second half of 2015 as well as into 2016,” he added.

Fuel accounted for 36 per cent of flydubai’s total operating costs in 2014, a reduction on the 39.5 per cent of costs the previous year. Fuel prices plummeted in the second half of 2014 with global benchmark Brent crude losing half its value. flydubai hedged 29 per cent of its fuel requirements in 2014 and said on Wednesday it has hedged 30 per cent in 2015. It did not state at what price bracket.

The number of passenger’s flying with the airline increased by 6.3 per cent from 6.82 million in 2013 to 7.25 million in 2014. Less than the 38 per cent year-on-year increase in 2013, according to a previous airline statement.

The airline cut some routes in 2014. Ukrainian cities Kharkiv and Donestsk have been removed from flydubai’s list of destinations, according to its website.

Overall visitor numbers to Dubai from Ukraine, Russia and the Commonwealth of Independent States have declined due to the escalating war in eastern Ukraine and depreciating rouble, Dubai aviation and hotel executives have previously said.

Flydubai took delivery of eight new Next-Generation Boeing 737-800 aircraft, ending the year with a fleet of 43. As of the end of December, 70 per cent of the airlines routes offer business class.

Flydubai said it expects to take delivery this year of the last of its 50 737-800’s that were ordered in 2008. It expects the first delivery of 737 MAX 8s in 2017, 75 were ordered in 2013.