Emirates Group profits drop 64 per cent
The Emirates Group announced a drop in profits of 64 per cent in its half-year results for 2016-17.
The company said in a statement yesterday morning that profits had been “hit by the double impact of a strong US dollar and challenging operating environment for the airline and travel business”.
A statement from the company read: “The Group for 201617 reported a halfyear net profit of Dhs1.3 billion ($364 million), down by 64 per cent.”
HH Sheikh Ahmed bin Saeed Al Maktoum, the Chairman and Chief Executive of Emirates Airline and Group, added: “Our performance for the first half of the 2016-17 financial year continues to be impacted by the strong US dollar against other major currencies.
“Increased competition, as well as the sustained economic and political uncertainty in many parts of the world has added downward pressure on prices as well as dampened travel demand.
“The bleak global economic outlook appears to be the new norm, with no immediate resolution in sight.
He added: “Against this backdrop, the Group has remained profitable and our solid business foundations continue to stand us in good stead. In the first six months of this year, both Emirates and dnata continued to grow in capability and capacity.
“Our past investments in product and services are now paying off, enabling us to retain valued clients and attract new customers – reflected in the airline’s passenger growth of 2.3 million.
“We continue to make strategic investments, because we know we have to work even harder for every customer, and make every dollar spent go even further through innovation and driving efficiency across our business.”
In the last six months, the Emirates Group has continued to expand its employee base by increasing its staffcount to more than 103,000, a nine per cent increase from March 31.