Emirates profits surge 65% in first half

Emirates Airline achieved a sharp rise in profits in the first half of its financial year.

Releasing its six-month results on Thursday, the Dubai-based carrier posted a net profit of AED1.3 billion (US$849 million), up 65% from the same period last year. The airline said the upturn in performance reflects “the impact of lower fuel prices and also the airline’s continued ability to grow passenger demand in line with significant capacity growth”.

On average, fuel prices were 41% lower this year than in 2014. As a result, fuel accounted for 28% of Emirates’ operating costs in the six months ending 30 September 2015, compared with 38% in the same period last year. Emirates’ revenues declined 4% to AED42.3bn.

The airline carried 25.7m passengers between 1 April and 30 September 2015, up 10% from the same period last year. This growth was driven by the addition of nine new aircraft to the airline’s fleet, resulting in a 14% increase in seat capacity. Passenger load factors dropped slightly however, from an average of 81.5% to 78.3%.

Overall, the Emirates Group’s first half net profit increased 65% to AED3.7bn, despite a 2.3% decline in revenues to AED46.1bn.

“Our top-line figures were hit hard by the strong US dollar against other major currencies,” explained HH Sheikh Ahmed bin Saeed Al Maktoum, chairman & chief executive of Emirates Airline and Group. “The currency exchange situation, combined with ongoing regional conflict and weak economic outlook in many parts of the world, dampened the positive impact of lower fuel prices during the first half of our 2015-16 financial year.

“We will keep an eye out for strategic growth opportunities, and stay agile so that we can respond effectively to external challenges,” he added.

Emirates launched flights to four new destinations in the first half – Bali, Multan, Orlando and Mashhad – boosting its network to 147 destinations in 79 countries.