Tur­bu­lent times

Emi­rates Group prof­its drop 64 per cent

7 Days in Dubai - - BUSINESS -

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.

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