Emirates has revealed a major drop in profits for the 2011-12 financial year.
The Dubai-based airline posted profits of AED1.5 billion (US$408 million) for the 12-month period – 72.1% lower than the record results it achieved in 2010-11. Revenues reached a new record high of AED62.3 billion last year, an increase of 14.9%, but rising jet fuel prices hit the airline. Emirates revealed that its fuel bill for 2011-12 jumped 44.4% year-on-year to AED24.3 billion.
Commenting on the results, Emirates’ Chairman & CEO, HH Sheikh Ahmed bin Saeed Al Maktoum, said he was pleased that the group registered its 24th consecutive year of profit, which he said “belies the industry norm”. He admitted however, that the economic environment had made life difficult for the airline.
“Managing volatile exchange rates, coupled with our highest ever fuel bill has required immense tenacity. Retaining growth and remaining profitable in these challenging economic times shows our profound understanding of the markets that we do business in,” Sheikh Ahmed said.
During the year Emirates took delivery of 22 new aircraft – its highest in any single year – and the airline’s available seat capacity has now almost doubled in the last five years.
Commenting on the outlook for 2012-13, Sheikh Ahmed said the mood in the company was one of “cautious optimism”.
“[We are] navigating our way through the difficult economic climate with a clear vision for our continued success. We understand that succeeding in this industry requires determination and we are unapologetic about our drive to be the best,” he said.
