Cargo volumes at Emirates have fallen slightly while half year 2018-19 airline profits have slumped 86 per cent due to currency issues and high fuel costs.
Airline revenue was up 10 per cent to 48.9 billion dirhams (AED) ($13.3 billion) but profits were down 86 per cent from AED 1.6 billion to AED 226 million with the profit margin reducing from 3.7 per cent to 0.5 per cent.
For the Emirates Group, revenue was up 10 per cent to AED 54.4 billion while profits were down 53 per cent to AED 1.1 billion, with the fall mainly being attributed to fuel prices increasing 37 per cent.
Emirates Airline and Group chairman and chief executive, His Highness Sheikh Ahmed bin Saeed Al Maktoum says: “Emirates and dnata grew steadily in the first half of 2018-19. Demand for our high quality products and services remained healthy, as we won new and return customers across our businesses and this is reflected in our revenue performance. However, the high fuel cost as well as currency devaluations in markets like India, Brazil, Angola and Iran, wiped approximately AED 4.6 billion from our profits.”
He adds: “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. We are keeping a tight rein on controllable costs and will continue to drive efficiency improvement through the implementation of new technology and business processes.”
Cargo volumes for Emirates were down one per cent to 1.3 million tonnes with yields improving 11 per cent, with the performance being driven by Emirates SkyCargo focusing on investments in products and services.
At dnata, revenue was up 11 per cent to AED 7 billion and profits by 31 per cent to AED 861 million, with cargo volumes increasing two per cent to 1.5 million tonnes.