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Emirates Group, airline profit up 65% to $1b

THE LEVANT NEWS — Dubai: Emirates reported on Thursday a 65-per cent jump in both half-year Group and airline profit.

Emirates Group, the parent company of the airline and dnata, made Dh3.7 billion ($1 billion) in profit the six months to September 30, 2015, compared with Dh2.2 billion a year ago, according to an emailed statement.

A strong US dollar against many major currencies pushed Group revenue down 2.3 per cent to Dh47.2 billion.

Emirates airline, the world’s biggest on international routes, made Dh3.1 billion over the first six months of the year, 65 per cent more than the Dh1.1 billion it reported a year ago.

Airline revenue also fell due to a strengthened US dollar but also because of lower average fares after the airline said it decided to pass on fuel cost savings to customers.

Revenue was Dh43.3 billion, 4 per cent less than a year ago.

Fuel accounted for 28 per cent of operating costs in the six months to September 30, 10 per cent less than in the same period a year ago after fuel prices dropped by an average of 41 per cent compared over the period, Emirates said.

Dnata, Emirates Group’s travel and airport services company, recorded a 64 per cent increase in profit to Dh557 million. Revenue rose 27 per cent to Dh4.1 billion. The company’s international division accounted for 67 per cent of all revenue.

“Our top-line figures were hit hard by the strong US dollar against other major currencies. The currency exchange situation, combined with ongoing regional conflict and weak economic outlook in many parts of the world, dampened the positive impact of lower fuel prices during the first half of our 2015-16 financial year,” stated Shaikh Ahmad bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.

SOURCE: GULF NEWS

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