Financial Times

Emirates struggling, half-year profits down 88%

 

Dubai – With high fuel prices hitting the airline industry, Emirates Airline’s profit of Dhs 284 million (US $77 million), for the first six months of its current financial year ending 30th September 2008 was sharply down 88 % against the previous year’s corresponding period.

“The first half of the year has been very tough for the airline industry, with record fuel prices forcing many carriers to shut shop or consolidate,” said Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group in a statement to the media.

He said recent events show that only the most efficient businesses will survive and prosper and added that (recent) investments put the airline in a strong position to weather the current crunch and future challenges. The airline has made massive investments in eco-efficient aircraft fleet; opened a world class airport terminal dedicated to Emirates operations and strengthened its global route network.

Sheikh Ahmed added: “Our business fundamentals are solid, and providing there is no further fall-out from the current global financial situation, we anticipate a robust second half of the financial year.”
Crude oil prices averaged $122 per barrel for the first six months of the financial year, up from an average of $67 for the same period last year, whilst the differential between crude and aviation fuel was also up from an average of $16 per barrel to $28. Overall, Emirates’ fuel costs were higher than budgeted by Dhs 1.7 billion ($469 million).

The drop in profits reflect a 40 % increase in airline unit costs per tonne kilometre, with fuel spend more than doubling from last year’s Dhs 4.1 billion ($1.1 billion) to Dhs 9.2 billion ($2.5 billion).


 
Top to the page  |  E-mail  |  views[1]
 
Other Financial Times Articles
“Didn’t go for best hedging option” – CPC
Rising costs, economy hurt profits at Dialog
Budget taxes will not raise prices of essential goods
Lanka IOC loses Rs 218 mln amidst heavy taxes, hedging
CBEU gets injunction against Seylan
The Sunday Times FT survey on best investment options
Hedging against oil futures
Dialog going thro’ tough times but says this is cyclical
CPC clearly understood the risks- SCB CEO
Colombo bourse dragged down after early gains
Inflation seen falling to 17-18% by December-CB
Marketers often underestimate consumers - study shows
‘G-nee’ provides info in a jiffy
Kuwait airline’s privatisation on track for April
Bussiness brief
Indian banks smug as banking crisis rolls past
Iraqis measure progress with flip of switch
Brazil to host biofuels meeting as crisis threatens industry
Oil trading slightly lower in Asia
U.S. bans melamine-tainted Chinese dairy products
INSEAD Leadership Summit discusses global financial crisis
YESL to recognise heroes of Sri Lanka’s economic success
Government sets up 64 ICT facility centres - Nenasalas - in the East
Affno e-Government showcased at GITEX
South Asia ready for Infrastructure Investment - MTI
Impact of the financial crisis on developing countries
MTD Walkers moves into global markets with new tea roller
Standard Chartered Bank launches FlySmiLes co-branded credit card
Private tea factory owners thank government
NComputing appoints Bartleet Electronics as distributor in Sri Lanka
Emirates struggling, half-year profits down 88%
Success through eco-friendly products
Tea traders say industry is bracing to meet challenges
World Bank says North-East projects progressing well
World’s most expensive Bone China tableware
Hemas holding strong against interest rates, lower rupee
Threats facing the garment industry
Impact of cess on agricultural commodities
Taxes taxing quality of life in Sri Lanka
Inland Revenue urges professionals to pay taxes
Taxation Commission to 'simplify' the tax structure
Tourism industry pleased with Budget

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2008 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution