Emirates Airline H1 profits crash 76% to $225m due to high fuel costs and the Arab Spring

A combination of higher fuel costs and the disruptions of the Arab Spring protests, civil wars and revolutions were blamed for a 76 per cent crash in profits to $225 million at Emirates Airline in the six months from April to September, although there was a 15 per cent rise in total revenues to $8.3 billion.

‘Emirates remains focused on its long-term strategy despite global instability and ever-climbing fuel prices, which resulted in Emirates paying $1 billion more in fuel costs over the same period last year and fluctuating exchange rates,’ said chairman Sheikh Ahmed bin Saeed Al Maktoum.

However, the airline kept its key passenger seat factor above 79 per cent in the six months. It also maintained a strong cash position of $3.8 billion after adding 3,400 staff and 10 new wide-body aircraft to bring its fleet up to 161 planes.

A380 fleet

Emirates has the largest fleet of A380 superjumbos in the skies and these spacious aircraft are a huge hit with passengers who even get a full service bar at the back and showers in the First Class (click here).

The group intends to continue spending around $1.1 billion on new aircraft each year. Emirates has 199 planes worth $18 billion on order before 2020. Its $1 billion bond issue in June was five times oversubscribed.

Emirates’ performance is likely to be at the top of industry averages in a very poor year for the aviation sector. The only quid pro quo is that oil revenues for the UAE will be at a historic high this year for much the same reasons.