Tough market fails to dent Emirates profit

Tough market fails to dent Emirates profit
By admin


Emirates Group has reported a 34% increase in net profit to AED3.1 billion (A$836 million) despite high fuel prices and a weak global economic climate.

The airline itself generated the bulk of the earnings with profits rising 52% to AED2.3b (A$620m).

It carried just under 40 million passengers, up 16% on the previous year while capacity climbed 18% and loads remained steady at 80%.

Asia and Australasia remained the highest revenue generating region, rising 15% to AED20.9b (A$5.6b). Total airline revenue climbed 17% to AED73.1b (A$19.7b).

“Achieving our 25th consecutive year of profit in a financial year with our largest ever increase in capacity across the network is an achievement that speaks to the strength of our brands and our leadership," said chairman and chief executive Sheikh Ahmed bin Saeed Al Maktoum.

The carrier said its premium seat factor remained strong despite financial uncertainty and corporates tightening their spend.

But fuel remained an issue. Despite the average price of jet fuel remaining steady, it still impacted the bottom line, the carrier said.

“Managing volatile exchange rates, coupled with a persistently high fuel bill accounting for 40% of our total expenditure has required continued strong resolve,” said Sheikh Ahmed.

Emirates took delivery of 34 aircraft during the year and launched 10 new routes.

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