Emirates Airlines reveals half-year results, net profit up by 8%
Profit improvement was primarily due to the decline in fuel prices
Emirates Group announced its half-year results for its 2019-20 financial year.
Officials revealed that group revenue was AED 53.3 billion (US$14.5 billion) for the first six months of 2019-20, down 2% from AED 54.4 billion ($14.8 billion) during the same period last year.
This slight revenue decline was mainly due to planned capacity reductions during the 45-day Southern Runway closure at Dubai International airport (DXB), and unfavourable currency movements in Europe, Australia, South Africa, India, and Pakistan.
Profitability was up 8% compared to the same period last year, with the Group reporting a 2019-20 half-year net profit of AED1.2 billion ($320 million).
The profit improvement was primarily due to the decline in fuel prices of 9% compared to the same period last year, however the gain from lower fuel costs were partially offset by negative currency movements.
Speaking about the results, H.H. Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group said: “The lower fuel cost was a welcome respite as we saw our fuel bill drop by AED 2.0 billion compared to the same period last year. However, unfavourable currency movements wiped off approximately AED 1.2 billion from our profits.
“The global outlook is difficult to predict, but we expect the airline and travel industry to continue facing headwinds over the next six months with stiff competition adding downward pressure on margins. As a Group we remain focussed on developing our business, and we will continue to invest in new capabilities that empower our people, and enable us to offer even better products, services, and experiences for our customers," he added.
The Group’s cash position on September 30, 2019 stood at AED 23 billion ($6.3 billion), compared to AED22.2 billion ($6 billion) as at March 31, 2019.