flydubai reported a 60% decline in its FY2015 earnings to cAED101 million, citing tough market conditions, hedging and the negative impact of a stronger dollar as the key pressures on bottom line that offset stronger revneues. Yields (Revenue Passenger Kilometre) hit by the launch of new routes and FX impact; tickets booked in currencies that are not pegged to the dollar are comparatively cheaper given the strengthening of the USD. Total revenue rose 11% to AED4.9 billion while the total number of passengers increased 25% to 9.04 in 2015. This would have been higher had it not been for the currency issue that impacted the number of passengers from Russia to Dubai (-22%) as well as some suspended routes (Iraq halted in January 2015 due to a small arms fire incident upon landing in Baghdad). The company’s hedging policy (41% of 2015 fuel) was a drag on profitability while fuel expenses dropped to 30% of operating cost. The company added that it has hedged 16% of its fuel requirements for the next 24 months. (Reuters)