Emirates to report ‘positive’ results
Emirates airline is set to report positive full-year results next week despite headwinds caused by certain regional and global developments, the airline’s president said.
Speaking at the Arabian Travel Market on Monday, Tim Clark said higher fuel costs and currency fluctuations along with other geopolitical developments would impact the bottom lines.
“However, we will come out with positive results although not as good as it has been in the past,” he said referring to the impending announcement of the annual results on May 9.
The Dubai-based airline is finalising a re-evaluation of its route network and fleet for the next decade, Clark said, adding that the airline, one the fastest growing global carriers, is not growing at the pace that it used to because of the geopolitical issues in the region and elsewhere.
“Nevertheless, it is time to take
stock of what the network is going to look like in the next five or 10 years, what the fleet fit into that network is going to be, and the type of aircraft,” Clark said.
He said the airline is satisfied with its performance given the headwinds it has faced over the past year.
The airline, the world’s largest long-haul carrier, recorded an 86 per cent plunge in first-half profit to its lowest in a decade and had warned that severe downward pressure on margins and uncertain economic and political realties around the world would make for a difficult second-half.
He said the current oil price of around $70 a barrel was too high, and he would like to see a price between $50 and $60.
Middle East airlines have also seen demand hit over the past five years by a collapse in oil prices, weakening consumer demand in region. Fuel costs are one of the single largest operational expenses for airlines.
Clark said he believes Boeing Co will resolve issues with its 737 MAX aircraft, saying the US company has an outstanding track record. The world’s largest planemaker’s fastestselling 737 MAX jets have been grounded after the disasters on Lion Air in Indonesia on October 29 and another on Ethiopian Airlines on March 10, which together killed all 346 on board.
In March, UAE’s General Civil Aviation Authority GCAA banned the operation of all Boeing 737 MAX models in the country’s airspace as a precautionary measure following the Ethiopian Airways crash. Flydubai is the only UAE airline operating the MAX 8 and MAX 9 aircraft.
Clark confirmed that Premium Economy seats will be offered from next year on both the airline’s new A380 planes and new Boeing 777 jets.
Ticket prices for the new cabin class are set to be “well below business class fares,” which will be good news for travellers who want a little bit more comfort without a huge increase in price, he said.
The introduction of Premium Economy class will give travellers a new level of comfort, at a price that is higher than that of Economy but not in the same realm of Business class fares.
We will come out with positive results although not as good as it has been in the past
Tim Clark,
President of Emirates