Fuel costs dent Emirates profits

The impact of surging jet fuel prices trimmed Emirates bottom line with the airline"s 2011-2012 profit of US$409 million showing a decrease of 72.1% over last year"s record results.

The drop in profit came despite Emirates revenue reaching a record high of US$17 billion, growing by 14.9% when compared to the 2010-11 financial year.

The airline carried a record 34 million passengers, an increase of 8%. Passenger Seat Factor was 80%, remaining consistent with last year"s results.

East Asia and Australasia remained the highest revenue contributing region with US$5 billion, up 17.6% from 2010-11.

Overall, the Emirates Group posted a US$629 million net profit, with ground services operator Dnata marking its highest ever profit in 52 years of operation.

Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO, Emirates Airline and Group, said the result had been achieved despite enormous challenges, including jet fuel prices and political unrest in the Middle East.

"Successful business growth is not a matter of luck, it is the result of sustained and calculated investment.

"Every dirham that we earn is strategically ploughed back into our business and it is this foresight that has allowed the group to maintain such strong and consistent profitability," he said.

In the 2011-12 financial year Emirates" fuel bill increased by 44.4% over last year to reach US$6.6 billion.

Thursday, May 10, 2012