Dubai: Flydubai has managed to recover the Dh147.4 million ($40 million) it lost in the first six months of the year in the third quarter, the airline said on Monday a day after it announced the loss.

Flydubai issued a statement on Monday stating that the first-half losses “have been fully recovered during the third quarter of 2015.” It did not release details of its third quarter financial performance.

On Sunday, the airline reported a Dh147.4 million loss for the six months to June 30, 2015, compared to a Dh53.1 million ($14 million) profit a year ago.

Flydubai blamed weak demand on Russian routes and conflict in Iraq, Yemen and Ukraine for the losses. It also said a strengthening United States dollar has put profitability under pressure. The UAE Dirham is pegged to the dollar.

Revenues rose 8.7 per cent to Dh2.2 billion ($600 million), compared to Dh1.88 billion ($515 million) in the first six months of 2014. Passenger traffic rose by 24.8 per cent.

The airline moved to dispel any concerns after announcing the losses with Tuesday’s statement. It said “the second half of the year generally the strongest in terms of the airline’s performance” (sic).

Demand for air travel out of Russia, Ukraine and the former Soviet states that make up the CIS has fallen over the past 12 to 18 months due to the war in Ukraine and a weak Russian economy, which has stumbled under western sanctions and sustained low oil prices.

But the drop in the Russian market “is expected to be temporary,” the airline said on Sunday on the Nasdaq Dubai, where it has listed a $500 million sukuk.

Flydubai launched two new Russian routes so far this year, bringing its Russian network to ten destinations. Meanwhile, flights to Ukraine, except Odessa and Kiev, remain suspended.

The airline also said it is facing challenges in the Middle East with conflicts raging in Iraq and Yemen.

“Expanded military activity in the north of Iraq has disrupted the company’s operations and saw flights to Arbil suspended at the beginning of the year restarting towards the middle of the year and flights to Sulaimaniyah remain suspended,” the airline said.

Flydubai has also suspended services to Aden and Sana in Yemen and is rerouting some flights to Africa to avoid the country's airspace, which has seen in increase in flying time and a cut in payload.

Flydubai added 33.6 per cent more capacity in the first half of year 2015, which the airline said negatively impacted its yield by 12 per cent.