News
Emirates takes 75% first-half profit hit
November 11th 2016
Dubai’s Emirates Airline this week posted a 75% net profit decline, to $214 million, for the first half of its 2016-2017 fiscal year. Read More » Revenues were down 1% but operating costs increased 5%, despite a 10% reduction in fuel costs.
Emirates added 12% in ASKs during the six months, outstripping an 8% RPK growth, which brought load factor down by 3%, to 75.3%.
“Increased competition, as well as the sustained economic and political uncertainty in many parts of the world, added downward pressure on prices but also dampened travel demand,” said Emirates Group chairman and CEO, Sheikh Ahmed bin Saeed Al Maktoum. He warned “the bleak global economic outlook appears to be the new norm, with no immediate resolution in sight”.
Emirates added eight A380s and eight B777-300ERs during its first half and retired 19 older and smaller aircraft. Last week, the airline phased out its remaining A330-200s and A340-300s. Following the cull, the fleet is 85 A380s and 145 B777s (10 –LRs; 10 -300s; a -200ER; 124 -300ERs).
