Low-cost carrier Flydubai has registered an AED316.8m ($86.3m) loss in the first half of 2018 due to higher fuel prices.

In a statement, Flydubai cited that the 35 per cent increase in the average Brent Crude oil prices between January and June this year resulted in a price impact equivalent to AED175m.

The carrier also said the economic and geopolitical climate “remains challenging, dampening demand for travel”.

“Yield has stabilised, although this has not been able to sufficiently offset the impact of higher fuel costs, rising interest rates and a stronger dollar,” the company said.

The carrier’s six-month revenue rose by 10.4 per cent to reach AED2.8bn, even though passenger numbers remained constant at 5.4 million.

The reported loss is over twice the figure reported for the corresponding period in 2017, which was AED142.5m. The carrier, however, recovered in the second half of 2017, posting a profit of AED37.3m for the full year.

Flydubai and Emirates Airline began a code-sharing service in the last quarter of last year.

The two airlines operate a fleet of over 300 aircraft that travel to over 250 destinations, and they plan to increase to 380 aircraft and 240 destinations by 2022.

The same shareholders own the two carriers, though they are managed by separate teams.

Emirates Airline generated $762m profits on the back of $25.2bn revenue in 2017.