Dubai's Emirates airline today reported a 76% drop in net profits in the first half of its financial year, reaching 827 million dirhams ($225m) as fuel costs surged.
The state-owned carrier, which posted net profits of 3.4 billion dirhams ($925m) the same time last year, said climbing fuel prices have inflicted an extra cost of $1 billion. The financial year of the carrier which is one of the world's fastest growing airlines, begins on April 1.
"Emirates remained focused on its long-term strategy despite global instability, 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," the group's chairman Sheikh Ahmed bin Saeed Al-Maktoum said.
Revenues of the group, including other operating income, were up 15% to 30.3 billion dirhams ($8.3 billion), compared with 26.4 billion dirhams ($7.2 billion) registered the year before.
Emirates posted in May a 51.9% surge in annual net profits of 5.4 billion dirhams ($1.5 billion) as it carried four million more passengers than the previous year.
Passenger revenue in the first half of this year was up 18%, with seat load factor remaining at 79%, the statement said, adding that the ever-expanding carrier recruited 3,400 new staff.
It said its cash position on September 30 remained strong with a current balance of 13.8 billion dirhams ($3.76 billion), compared to 14 billion ($3.8 billion) on March 31. The airline has also successfully raised financing of $1 billion during the first half of the year through the issue of a new bond, as well as financing 10 new aircraft deliveries.
Emirates has a fleet of 161 aircraft. Since the beginning of its current financial year, it took delivery of 10 new wide-body aircraft, with another 13 new aircraft scheduled to be delivered before the end of March 2012.
