Emirates Airline produced a net profit of Dh284 million ($77 million), for the first six months of its current financial year ending September 30, 2008. This is down 88 per cent compared to Dh2.36 billion ($643 million) net profits for the same period in 2007, showing the impact of the record fuel prices earlier this year.
HH Sheikh Ahmed bin Saeed Al-Maktoum, chairman and chief executive, Emirates Airline and Group said, “The first half of the year has been very tough for the airline industry, with record fuel prices forcing many carriers to shut shop or consolidate.”
“We’ve made massive investments in our eco-efficient aircraft fleet; in our newly-opened world class airport terminal dedicated to Emirates operations; in strengthening our global route network; and also in the supporting infrastructure for our growing business. Recent events show that only the most efficient businesses will survive and prosper, and these investments put us in a strong position to weather the current crunch and future challenges.”
Sheikh Ahmed added, “Our business fundamentals are solid, and providing there is no further fall-out from the current global financial situation, we anticipate a robust second half of the financial year.”
Crude oil prices averaged $122 per barrel for the first six months of the financial year, up from an average of $67 for the same period last year, whilst the differential between crude and aviation fuel was also up from an average of $16 per barrel to $28. Overall, Emirates’ fuel costs were higher than budgeted by Dh1.7 billion ($469 million).
The drop in profits reflect a 40 per cent increase in airline unit costs per tonne kilometre, with fuel spend more than doubling from last year’s Dh4.1 billion ($1.1 billion) to Dhs 9.2 billion ($2.5 billion).
In the first-half of its financial year 2008-09, Emirates continued to post strong business growth, with operating revenues increasing by 31 per cent to Dh22.1 billion ($6 billion). Passenger traffic (RPKM) was up 11 per cent, cargo tonnes up 13 per cent, and passenger yield increased by 20 per cent.