11 November, 2008, DUBAI - Emirates saw half-year profits plunge by 88% in the half year ending September 30.
The UAE carrier’s net profit in the six month was just US$77 million against US$643 million for the same period last year.
The decline was blamed on the impact of the record fuel prices earlier this year.
Fuel spend more than doubled from $1.1 billion to $2.5 billion.
The results from the Dubai-based carrier follow British Airways showing a half-year profits decline of more than 90% .
Crude oil prices averaged $122 per barrel for the first half of the financial year, up from an average of $67 for the same period last year, Emirates said.
Emirates’ overall fuel costs were higher than budgeted by $469 million.
The airline’s chairman and chief executive Sheikh Ahmed bin Saeed Al-Maktoum said, “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.
“Emirates has worked hard to manage the impact of high fuel prices on our unit costs, while continuing to grow our business and provide our customers with a quality product and service.”
He added: “Recent events show that only the most efficient businesses will survive and prosper”, claiming the carrier was in a strong position to weather the credit crunch and future challenges.
Sheikh Ahmed said, “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.”
Passenger traffic was up 11% and passenger yield increased by 20% in the half year.
