Airlines Emirates Airline profits collapse by 86%
Emirates Airline has published its financial figures for the second quarter of 2018.
Between April and September 2018, the revenues rose by 10 percent to US$13,3 billion. However, net income sank by 86 percent to US$62 million at the end of the six-month period. This results in lowered profit margins from 3.7 percent to just 0.5 percent. Cash assets sank 17 percent to US$4,6 billion.
The airline´s profits were mainly impacted by the increase in fuel costs. Emirates had to pay 42 percent more for fuel, compared to the previous year. A total of approximately US$1,25 billion was wiped out in profits. Currency devaluations in important countries like Angola, Brazil, India and Iran contributed to this trend.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, confirmed: “Business conditions in 2017-18, while improved, remained tough. We saw ongoing political instability, currency volatility and devaluations in Africa, rising oil prices which drove our costs up, and downward pressure on margins from relentless competition.”
On the bright side, Emirates reported it transported a total of 30,1 million passengers, which represents a three percent rise. In 2Q18, the carrier took delivery of eight new aircraft, including three Airbus A380s and five Boeing 777s. The overall percentage of seats sold rose from 77,2 to 78,8 percent.
The Emirates Group recorded a profit for the 30th consecutive year while profit fell 53 percent to US$296 million. Emirates Airline recorded profits of AED 2,8 billion to the Investment Corporation of Dubai. Dnata, which belongs to Emirates Group as well, earned its highest profit ever with AED 1,3 billion.
The industries’ circumstances however remain difficult, not only for Emirates. In order to fight its downward spiral, Emirates trimmed its employee base by close to 1,400 people since March this year.
Emirates is a long-haul carrier based in Dubai, United Arab Emirates. The carrier operates with a fleet of over 260 aircraft, including 105 Airbus A380s and 161 Boeing 777s. Recently, the carrier started sending its A380 flagship to the cities of Hamburg and Osaka. Emirates serves 155 destinations in 85 countries.
Source © emirates.com