Flydubai reported a record annual profit, as the Gulf carrier evolved further from its low-cost roots and benefited from Dubai’s growth as a travel hub.

Profit totaled 2.2 billion dirhams ($600 million) for 2024, the company said Monday in a statement. Revenue of 12.8 billion dirhams marked a 15% increase.

Flydubai, the sister company of full-service airline Emirates, has been investing in premium services, introducing lie-flat seats and setting up a dedicated business-class check-in area along with a new lounge at Dubai International Airport.

The airline, founded in 2008, started off with a model closer to the budget category but has since introduced business-class cabins and in-flight entertainment systems — two features usually missing aboard no-frills rivals like Ryanair Holdings PLC and Wizz Air Holdings Plc.

State-owned Flydubai carried 15.4 million passengers in 2024, up 11% compared to 2023, as it added flights to cities such as Sochi, Russia, Lahore in Pakistan and Basel, Switzerland. Demand for business-class travel increased 18% across its network.

2024 was the first year Flydubai paid taxes under a new corporate-tax rule for companies in the United Arab Emirates. Pretax profit jumped 16% from a year earlier.

The airline is grappling with severe delays on deliveries from Boeing Co., which has forced it to cancel some flights and halt several new routes.

“Our strategic plans are highly influenced by the manufacturer’s ability to deliver on their promise to bring the aircraft delivery schedules back on track and clear the backlog,” Chief Executive Officer Ghaith Al Ghaith said a statement.

While the carrier operates an all-Boeing fleet, the delays have prompted a rethink of that exclusive arrangement. Flydubai is looking to purchase at least 200 narrowbody jets plus 100 options, Bloomberg News reported last week.

The carrier is set to receive 12 new Boeing 737s in 2025 to grow its fleet and replace some existing aircraft.

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