06 November 2009

Emirates profit surges a whopping 165 percent

DUBAI - Emirates has produced a set of half-year financial results that will be the envy of many other international airlines.

Emirates airline produced a net profit of Dhs 752 million (US$205 million), for the first six months of its current financial year ending September 30,2009.

Emirates said the figure represents a 165 percent improvement compared to US$77 million net profits for the same period in 2008.

Ã¢â¬~¨Ã¢â¬~¨Sheikh Ahmed bin Saeed Al-Maktoum, chairman and chief executive, Emirates airline and Group said, "The months since the global meltdown have really tested our mettle.

"Unlike others in the industry, Emirates did not cut back on its product, service or people.

"Instead, we invested in these areas and looked to our people to develop ever more innovative ways to manage costs, improve efficiencies, reallocate resources, and drive alternative strategies for the business."

Ã¢â¬~¨Ã¢â¬~¨In the first-half of its financial year 2009-10, Emirates said it posted strong business growth, both in terms of capacity on offer and traffic carried compared to the corresponding period in 2008, "a performance that has been in stark contrast to the current trend seen across the aviation industry".

Capacity measured in Available Seat Kilometers (ASKM), grew by 22 percent, whilst passenger traffic carried measured in Revenue Passenger Kilometers (RPKM) was up 21 percent with Passenger Seat Factor sustained at a high level, averaging 77.5 percent, slightly down compared to 78.3 percent for last year.

Ã¢â¬~¨Ã¢â¬~¨Sheikh Ahmed added, "While some say the green shoots of economy recovery are sprouting, we expect it will take at least another year or two, before demand for air transport and travel services starts picking up again.

"In the meantime, Emirates is well-placed to weather the rest of the storm."

FOOTNOTE: In its latest industry snapshot, the International Air Transport Association said it expected airlines to lose $11 billion on a net basis in 2009 and warned that with jet fuel prices on the rise, cash flows would be under pressure.