Low-cost carrier flydubai reported a narrower loss in the first half of 2016, posting Dh89.97 million ($24.49 million) from January to June, down 39% from Dh147.40 million ($40.1 million) in the same period last year.

Total first-half revenue was up 5.4% year-on-year at Dh2.30 billion ($626 million) and passenger numbers were also up 16.5% year-on-year at 4.9 million.

“We have seen continued pressure on yields due to the uncertain international economic situation set against a backdrop of lower oil prices and adverse currency exchange rates,” flydubai Chief Financial Officer Mukesh Sodani said in the statement.

“We maintain a sharp focus on cost improvement while pursuing our broader goal of expanding our network and our service offering,” he said.

Lower fuel prices, together with a reduction in its hedging position from 41% last year to 22% this year, saw fuel account for 23.5% of total operating cost down from 30.6% last year.

However, CEO Ghaith Al Ghaith indicated the airline would see a stronger second half of the year.

“Looking ahead to the second half of the year, we have started to receive the first deliveries from the order for 111 aircraft placed in 2013 with a total of eight aircraft scheduled to join our fleet between May and December,” he said.

“Supported by the new aircraft deliveries, we will expand our convenient services across our network and see the start of double daily flights to Bangkok.”