Flydubai plans to increase capacity in the GCC and expand business in eastern Europe and Africa, the chief executive, Ghaith Al Ghaith said on Monday.

Flydubai last month posted a 60 per cent drop in last year’s net profit as tough market conditions, its fuel hedging policy and the stronger dollar hit the company’s earnings.

Flydubai flies to 89 destinations in 43 countries. The carrier will start to receive 16 new aircraft from May, phased over the following two years. It also plans to retire seven aircraft to maintain a young fleet.

At the summit on Monday, Adel Ali, AirArabia chief executive, said the budget airline is foc­used on increasing passenger numbers as it pursues its strategy of greater scale across the Middle East and North Africa.