Abu Dhabi Avi­a­tion profit falls

The National - News - Business - - Inside track - Mah­moud Kassem [email protected]­ational.ae

Abu Dhabi Avi­a­tion said first quar­ter net profit fell by more than 41.4 per cent.

A slow­down in rev­enues and losses from the dis­posal of prop­erty and equip­ment hit earn­ings at the Mid­dle East’s big­gest oper­a­tor of com­mer­cial he­li­copters.

Net profit at­trib­ut­able to own­ers of the com­pany slipped to Dh37.6 mil­lion in the first three months of the year com­pared to Dh64.2m in the same pe­riod last year, the com­pany said in a state­ment to the Abu Dhabi stock ex­change.

Rev­enue fell 11 per cent to Dh392m in the quar­ter from Dh440m in the cor­re­spond­ing pe­riod last year, it said.

The com­pany has been suf­fer­ing from weak­ened de­mand for air ser­vices amid the most se­vere drop in the price of oil since 2008. The com­pany has said that it is us­ing the soft­en­ing of de­mand for its avi­a­tion ser­vices to diver­sify its lines of busi­ness, adding train­ing and real es­tate in­vest­ment to its port­fo­lio of ac­tiv­i­ties.

Nader Al Ham­madi, the com­pany’s chair­man, told The Na­tional last year that cor­po­rate travel has been the most se­verely af­fected part of Abu Dhabi Avi­a­tion’s busi­ness as com­pa­nies typ­i­cally save on travel dur­ing down­turns.

He said that other parts of Abu Dhabi Avi­a­tion’s busi­ness, such as cargo and train­ing, have not been as badly af­fected as its cor­po­rate ser­vices.

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