Five Signals Marking flydubai’s Shift From Its Low-Cost Model

For most of its history, flydubai has been positioned as Dubai’s value-oriented alternative, built on the classic low-cost carrier model of point-to-point flying, simplified fleets, unbundled fares and high utilisation. Over time, however, the airline began moving beyond that template. The introduction of lie-flat Business Class, the opening of a dedicated Business Lounge and the decision to order 787-9 Dreamliners all signaled a shift well before Economy meals and IFE were added. These steps have now come together as part of a much broader strategic repositioning.

CEO Ghaith Al Ghaith recently noted that “the concept of a traditional low-cost airline does not work in this region.” That candid admission is not new. The signs of flydubai’s evolution have been visible for years. What follows are the five clearest signals that show the airline is now reinventing itself as a value-hybrid carrier rather than a pure LCC.

1. Three-Class Layout on Future 787-9s: Premium Economy Joins the Roster

At the Dubai Airshow 2025, flydubai confirmed that its upcoming Boeing 787‑9 Dreamliners will feature a three-class cabin layout, including Economy, Premium Economy and Business.

“We’ve finalised the [cabin layout] plan. We definitely will have three classes … we will have business, premium economy and economy,” said CEO Ghaith Al Ghaith

The 30 787-9 aircraft were part of an order placed in 2023, marking the carrier’s first move into twin-aisle operations and long-haul capacity.

This is seismic because no true LCC operates wide-body aircraft with multiple premium cabins. While some LCCs do operate widebodies, but they typically use high-density two-class layouts with minimal service differentiation. A three-class layout raises cost, service complexity and operational demands, from cabin crew training and catering to seat configuration, boarding procedures and maintenance. By introducing Premium Economy, flydubai is signaling it is no longer aiming solely at the lowest possible cost base; instead, it’s building a product that appeals to mid-to-upper-tier leisure and business travelers who value comfort over bare-bones pricing.

By introducing long-haul wide-bodies with premium cabins, flydubai is moving from a budget short/medium-haul operator into the territory of a full-fledged network carrier, or at least a “hybrid.”

2. Complimentary Meals & In-Flight Entertainment in Economy: Fare Unbundling Reversed

Beginning November 2025, flydubai began bundling meals and in-flight entertainment into all Economy fares. Read more about it in our coverage: Flydubai to Offer Free Meals and In-Flight Entertainment in Economy

Historically, one of the defining traits of an LCC and a key element of its low-fare appeal has been unbundled services: seats are cheap, but everything else, including meals, entertainment, baggage, etc., is an add-on. By reversing that model, flydubai is realigning with what full-service carriers do routinely.

As Ghaith Al Ghaith, Chief Executive Officer at flydubai put it:

“Redefining the Economy Class offering across all flights represents a significant evolution in our business model, offering customers a more elevated and convenient travel journey.”

In doing so, flydubai resets passenger expectations. Travellers will no longer view the base ticket as “just a seat” with optional extras, but as a more holistic travel experience. That shift alone reduces the psychological and practical distance between flydubai and traditional full-service carriers.

3. Free High-Speed Wi-Fi Across the Fleet: Connectivity as a Differentiator

At the same 2025 Airshow, flydubai signed an agreement with SpaceX to deploy Starlink across its fleet of Boeing 737s, with installation on 100 aircraft planned to begin in 2026.

Starlink promises high-speed, low-latency broadband internet capable of supporting streaming, video calls, online gaming. Essentially delivering in-flight connectivity on par with ground-based broadband.

This is a statement beyond just a nice-to-have amenity. In today’s airline market, Internet connectivity has moved from “luxury” to “essential,” especially for business travelers, digital nomads, and long-haul passengers. By rolling out free Starlink Wi-Fi to a large portion of its fleet, flydubai is signaling ambitions well beyond the budget segment.

Moreover, offering this consistently across its network rather than as a pay-per-use add-on, aligns once again with full-service carrier practices, not LCC monetization strategies.

4. Premium Cabin Enhancements on Narrow-Bodies: Upgrading the 737-Era Fleet

Flydubai’s narrow-body fleet has been steadily upgraded over the past few years. The airline began with recliner-style Business Class on the 737-800, then introduced lie-flat seats on select 737 MAX 8 aircraft, and later showcased an enhanced flat-bed product at Arabian Travel Market 2022. The table below, taken from flydubai’s 2022 press release, highlights how varied the cabin offering has become across the fleet.

This level of variation is unusual for a low-cost carrier. Most LCCs operate a single, high-density layout to keep operations simple. Flydubai is moving in the opposite direction with multiple Business Class seat types and tailored cabin configurations. The result is a narrow-body product that looks far closer to a hybrid or full-service model than a traditional low-cost approach.

5. Broader Infrastructure & Fleet Strategy: Building a Full-Service Ecosystem

Flydubai’s broader strategic direction shows how far the airline has moved beyond the classic low-cost framework. Earlier media releases regularly highlighted the efficiency of operating a single fleet type and positioned this simplicity as a core element of the carrier’s identity. That long-standing model began to change in 2023 when flydubai announced its first 787-9 Dreamliners. The shift accelerated further at the 2025 Dubai Airshow with an MoU for up to 150 Airbus A321neo aircraft. These decisions mark a clear move away from the all-Boeing 737 fleet the airline had relied on since its inception.

The growing fleet variety allows flydubai to serve different markets with tailored products and longer-range aircraft. It also reflects a more complex operating profile than a traditional low-cost carrier.

Alongside this, flydubai has been investing in lounges, premium check-in areas and digital retailing systems that are typically associated with full-service airlines. The growing integration with Emirates strengthens this direction further, positioning flydubai as part of a broader network strategy rather than a stand-alone budget carrier.

Taken together, these moves suggest flydubai is not simply tinkering with its onboard product but rather building the broader supporting architecture of a full-service or value-focused hybrid carrier.

Why This is a Fundamental Strategic Shift

To understand why these changes matter, it helps to consider how low-cost carriers typically operate.

Unbundled fares and ancillary monetisation:
LCCs keep base fares minimal and rely heavily on add-on charges for baggage, meals, seat selection and other services. Flydubai is moving away from this model by offering free meals, IFE and Wi-Fi, which reduces the dependence on small ancillary transactions.

Single-class or basic dual-class cabins:
LCCs rarely invest in premium cabins, particularly on narrow-body aircraft. Very few operate wide-bodies with any kind of premium layout. Flydubai’s plan to introduce Premium Economy and Business Class on the 787-9 is a clear break from this pattern.

Lean fleets built for simplicity:
Most LCCs rely on a single aircraft type to minimise training, maintenance and scheduling costs. Flydubai is moving in a different direction with the A321neo, the 737 MAX family and the 787-9. The added variety brings more complexity and a higher cost base, but it also supports broader networks and long-haul capability.

Minimal ground services and limited hub infrastructure:
Traditional LCCs focus on point-to-point routes and avoid premium ground services such as lounges, dedicated check-in areas or complex interline arrangements. Flydubai is taking the opposite approach with greater investment in premium ground facilities and new system integrations with Dubai Airports that support more sophisticated operations.

The implication is that flydubai no longer appears to prioritise cost leadership above every other consideration. The airline is choosing a broader, more comfortable and more connected product, even though it comes with higher operating costs. This combination places flydubai firmly on the path toward a value-focused hybrid model rather than a pure low-cost carrier.