Emirates profits fall 70% and market is expected to remain challenging

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Emirates Group profits have fallen by 70 per cent in the 2016-17 financial year to 2.4 billion dirhams ($653 million) due to lower yields, weaker consumer confidence and on-going geopolitical instability.

Emirates SkyCargo was affected by the fall, with revenue down five per cent to AED10.6 billion with yield per freight tonne kilometre declining eight per cent due to a downward trend across the industry and the weakening of major currencies against the US dollar, though tonnage was up three per cent to 2.6 million tonnes.

The freighter fleet remained unchanged at 15 aircraft, with 13 Boeing 777Fs and two 747-400Fs, and Emirates SkyCargo launched freighter flights to Phnom Penh as well as Dubai – Oslo and Delhi – Hong Kong links.

Emirates SkyCargo also inaugurated the 4,000 square metre Emirates SkyPharma facility at Dubai International Airport and launched White Cover Advanced, a protective solution for temperature-sensitive cargo.

Emirates Group and airline chairman and chief executive officer, His Highness Sheikh Ahmed bin Saeed Al Maktoum says: “Emirates and dnata have continued to deliver profits and grow the business, despite 2016-17 having been one of our most challenging years to date.”

Describing the outlook, he says: “We remain optimistic for the future of our industry, although we expect the year ahead to remain challenging with hyper competition squeezing airline yields, and volatility in many markets impacting travel flows and demand.”

Dnata revenue grew 14.6 per cent to AED 12.2 billion and profits by 14.8 per cent to 1.2 billion, while volumes were up 38.3 per cent to 2.8 million tonnes.