Dubai's Emirates profit dives 86% in H1 2018

Dubai-based Emirates airline on Thursday reported a 86 percent drop in its net profit for the first half of 2018 on the back of higher oil prices and currency fluctuations.

The airline reported a net profit of AED 226 million for the six months from April to September 2018, as revenues grew 10 percent year-on-year to AED 48.9 billion.

Emirates carried 30.1 million passengers in the first half, an increase of three percent, the statement said.

Meanwhile, Emirates Group, the parent company of the airline, reported a 53 percent drop in its net profit for the first six months of 2018 at AED 1.1 billion.

Profit erosion was “primarily due to the significant increase in fuel prices of 37 percent compared to the same period last year, as well as the negative impact of currencies in certain markets,” the statement added.

The group’s revenues rose 10 percent to AED 54.4 billion from AED 49.4 billion recorded in the same six months of 2017.

Shaikh Ahmad Bin Saeed Al Maktoum, chairman and chief executive officer of Emirates Airline and Group, said that higher fuel costs and currency devaluations in markets including India, Brazil, Angola, and Iran wiped around AED 4.6 billion from the group’s profits.

“The next six months will be tough, but the Emirates Group’s foundations remain strong,” he added.

@emirates Group has announced its half-year results for 2018-19. The revenue performance reflects the strong demand for Emirates and dnata’s products and services. However, profits were impacted by the high fuel cost and currency devaluations. pic.twitter.com/NYScrzs5LX

— HH Ahmed bin Saeed (@HHAhmedBinSaeed) November 15, 2018