Emirates blames fuel costs and currency for headwinds
Dubai’s Emirates Airline posted a small increase in first half profit, but said high fuel prices dragged on earnings.
Emirates said net profit in the six-month period increased by 2% to US$475 million, compared with the same period a year earlier, as passenger traffic increased 15% to 21.5 million.
Revenues at the carrier were 12% higher at US$10.8 billion, while seat factor was maintained at about 79%.
“High fuel prices, accounting for 39% of our expenditures, and the unfavourable currency exchange environment continue to eat into our profits,” said chairman and chief executive Sheikh Ahmed bin Saeed Al Maktoum.
The Dubai government-owned airline currently flies to 137 destinations in 77 countries. It has posted a profit in every year of operation and full-year growth has slowed only twice – in 2009 and 2011.
“Emirates is now the world’s third largest airline – but as yet the wheels show no sign of coming off,” Sudeep Ghai, managing partner at London-based consultancy Athena Aviation, told the Wall Street Journal.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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