Emirates profits hit by rising fuel costs
Dubai's Emirates Airline on Tuesday posted a two percent increase in half yearly profits, blaming high fuel costs and an “unfavorable” currency exchange environment for the slow growth.
The Sauid Gazette reports that the carrier’s net profits in the first half of the fiscal year to March 31, 2014 stood at AED1.7 billion ($475 million), “up two percent from the same period last year,” Emirates said in a statement.
“High fuel prices, accounting for 39 percent of our expenditures, and the unfavorable currency exchange environment continue to eat into our profits,” said Emirates chief executive officer Sheikh Ahmed bin Saeed Al-Maktoum.
Revenues for the airline reached $10.8 billion, 12 percent up from $9.6 billion in the corresponding period last year.
The airline that operates the world’s largest fleet of A380s and the largest fleet of Boeing 777s, said its Passenger Seat Factor averaged 79.2 percent, slightly below last year’s 79.7 percent.
It carried 21.5 million passengers, up 15 percent. Emirates flies to 137 destinations in 77 countries, up from 126 cities last year in 74 countries.
Net profits for the wider Emirates Group, which includes its airline services arm, Dnata, rose 4 percent to AED2.2 billion.
The airline is set to increase its fleet further with a much-anticipated order for Boeing’s revamped 777X at the Dubai Air Show next week
- Oman’s Duqm tourist complex moves forward with government approval
- Tunisian Confederation of Industry, Trade, and Handicrafts fights nationwide unemployment levels
- Kuwait fights budget deficit: Reexamining government salaries, expatriate labor
- Construction costs fall in Dubai
- Western tourists flock to Iran, could generate $30B in new revenue
- sharp rise in jet fuel costs increases airlines’ demand for skilled procurement professionals
- Fuel costs to prevent Gulf Air from recording healthy profit
- Lebanon's economy takes a knock as fuel prices hit the roof
- High fuel price cut Emirate Airline’s profit margin
- Rising oil prices hit airline profits