Airline net profit 786 mln dhs, down 75 pct - statement
Dubai airline Emirates reports 75 pct fall in H1 profit
09 Nov 2016 - 11:53
DUBAI: Emirates reported a 75 percent fall in first-half net profit from its airline operations as Dubai's flagship airline was buffeted by a strong dollar and tougher competition.
The world's largest carrier of international passengers reported a profit of 786 million dirhams ($214 million) for the six months to Sept. 30.
Increased competition and political and economic uncertainty in many parts of the world had dampened prices and travel demand, Emirates Chairman Sheikh Ahmed bin Saeed al-Maktoum said in a statement.
Emirates said profit for the wider group, which includes airline services arm Dnata, fell 64 percent to 1.3 billion dirhams.
"The bleak global economic outlook appears to be the new norm, with no immediate resolution in sight," Sheikh Ahmed said.
Emirate's average passenger seat factor fell to 75.3 percent in the first half from 78.3 percent a year earlier.
Africa has been in focus in recent weeks. Emirates suspended its four times weekly service between Dubai and Abuja, Nigeria, effective Oct. 30.
These negative factors overshadowed a 10 percent fall in the average cost of fuel. Fuel costs accounted for 24 percent of operating costs, down from 28 percent a year earlier.
Its earnings in the first half of its 2015-16 fiscal year were boosted by a decision not to hedge on fuel costs.
Emirates on Wednesday made no mention of a crash on Aug. 3 involving one of its jets which temporarily closed its hub, Dubai International. It was the first significant accident in the airline's more-than-30-year history.