The UAE’s low-cost airline Flydubai suffered a loss of AED147.4m ($40m) during the first half of 2015, compared with profits of $14.5m during the same period last year.

The company’s financial statement filed with Nasdaq Dubai did not mention its third-quarter results.

The firm attributed its negative performance during the first half of the year mainly to flight suspensions in conflict areas such as northern Iraq, Yemen and Ukraine.

In addition to flight suspensions, factors such as the limitations of Yemeni airspace for commercial flights are understood to have caused changes in flight paths, which led to increased flight times and payload restrictions.

Demand for travel to to Russia, the firm cited, also declined due to the country’s economic slowdown.

The strengthening dollar affected the airline’s profitability.

Lower oil prices should have helped cut costs and boost the airline’s profits but failed. Jet fuel is understood to account for an estimated 20-50 per cent of an airline’s operating costs.

The firm’s revenue, however, rose 8.7 per cent to reach $599m in the first half of 2015, compared with the previous year.

Local bank Emirates NBD’s monthly Dubai Economy Tracker earlier cited softness in terms of business activities in the emirate’s travel and hospitality sector, compared with the construction and retail and wholesale sectors.

Flydubai’s financial performance validates the tracker’s findings.