Emirates Airline half-year profit slides 86% on oil hike

Author: 
Reuters
ID: 
1542280787381001800
Thu, 2018-11-15 11:16

DUBAI: Emirates Airline on Thursday posted an 86 percent drop in
half-year profits as the Middle East’s leading carrier was hit by a
hike in oil prices and currency devaluations.
The Dubai-based airline in a statement its net profit in the six
months to September 30 was also impacted by other challenges and
expected tough months ahead.
Emirates said it recorded a profit of just $62 million in the first
half of the 2018-2019 fiscal year compared with $452 million in the
same period last year.
“The high fuel cost as well as currency devaluations in markets
like India, Brazil, Angola and Iran, wiped approximately 4.6
billion dirhams ($1.25 billion) from our profits,” said Sheikh
Ahmed bin Saeed Al-Maktoum, chairman and chief executive of
Emirates Group.
Emirates, one of the world’s biggest airlines, said fuel costs rose
by 42 percent compared with the same period last year.
The company, which flies to more than 150 destinations, said the
cost of fuel amounted to a third of its expenses.
Emirates is the world’s largest operator of Airbus A380s with more
than 100 of the superjumbos in its fleet.
“The next six months will be tough, but the Emirates Group’s
foundations remain strong,” Sheikh Ahmed said in a statement.
In the six months to September 30, the airline carried 30.1 million
passengers, a rise of three percent on the last fiscal year, the
company said.
Emirates’ revenues were 10 percent higher than the previous year at
$13.3 billion.
“We are proactively managing the myriad challenges faced by the
airline and travel industry, including the relentless downward
pressure on yields and uncertain economic and political realities
in our region and in other parts of the world,” said Sheikh
Ahmed.
Profit for the Emirates Group, which also includes Dnata, a leading
air services provider, was also down by 53 percent to $296
million.

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Source: FS – All-News-Economy
Emirates Airline half-year profit slides 86% on oil hike