Why Emirates Airline continues to grow

The youngest aircraft and flight attendants, great routes and flight timings, high specification aircraft with the best available for each class, the beautiful new dedicated hub terminal in Dubai, there is a long list of reasons why Emirates continues to fly high.

Yes there was a palpable disappointment in the Emirates Group’s 72 per cent fall in profits to $405 million for its latest financial year. But then rivals like British Airways and Singapore Airways were in the red, and regional carriers like Etihad, Qatar Airways and Gulf Air are still subsidizing passengers to fly with them.

Profitable

Emirates emerges once again as among the elite of airlines that actually make a profit, and are not run for national prestige or as a folly of their bankers. However, even the most nimble airline with clever management and ample resources can not beat a global economic slump.

The financial results show that Emirates’ passenger revenues jumped 17 per cent to $9 billion, while the airline’s profits dropped by 80 per cent to $267 million. Falling profits and rising revenues are not a healthy sign.

This year the airline is taking delivery of 18 aircraft to add to its existing fleet of 132 which already includes four A380s. Chairman Sheikh Ahmed bin Saeed Al Maktoum said financial commitments for over half of these new aircraft have been secured.

It is clearly going to be a challenge to deploy so many new large aircraft at a time of global economic crisis.

‘Without downplaying the global economic situation and its challenges for our business, I still believe that the coming year will be one of satisfactory growth for Emirates Group,’ said Sheikh Ahmed.

Proactive investment

Indeed, as Emirates continues to invest in new aircraft and upgrades its offering this is going to contrast with the contraction of routes now very evident among other long-haul carriers. Plugging these gaps has won Emirates passengers in past industry downturns and there is no reason to believe this time will be any different.

For in a recession the survival of the fittest is the name of the game, and Emirates’ financial results show true strength in tough times.