Emirates profits nearly quadruple in half-year
PROFIT MARGINS IMPROVE AS FUEL COSTS DECLINE
Emirates airline reported yesterday a spike in its net profit, which more than tripled in the first half of 2019 as costs declined and margins improved.
The Dubai-based carrier recorded Dh862 million in profit in the April-to-September period, up from the decade-low profit of Dh226 million in the same period last year. This came even as revenues dipped.
Revenues for the first half reached Dh47.3 billion, down 3 per cent compared to last year, as the number of passengers carried by the airline inched down by 2 per cent to 29.6 million.
Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and Chief Executive of Emirates airline and Group, said the earnings for the first half came as the company adapted its strategies “to navigate the tough trading conditions and social-political uncertainty in many markets.”
He said the company “kept a tight rein” on costs, and benefited from lower fuel prices.
Overall operating costs shrunk by 8 per cent, and the airline’s capacity dropped by 7 per cent due to the 45-day closure of one of the two runways at Dubai International Airport.
‘Welcome respite’
Yesterday, Shaikh Ahmad said in a statement: “The lower fuel cost was a welcome respite as we saw our fuel bill drop by
Dh2 billion compared to the same period last year. However, unfavourable currency movements wiped off approximately Dh1.2 billion from our profits.”
As for Emirates Group, the parent company under which the airline operates, it reported an 8 per cent increase in net profit for the first half of the year, reaching Dh1.2 billion.
Dnata reported yesterday a 64 per cent fall in its profits, which reached Dh311 million as the business took an impairment loss of Dh84 million on money it should have received from Thomas Cook, which has filed for bankruptcy. The British travel group was one of Dnata’s major customers in the UK.