Emirates Airline said Thursday its first-half net profit almost tripled as it cut costs and benefitted from lower fuel prices, but the company warned that demand for air travel is unlikely to pickup for at least a year.
The Middle East’s largest carrier said net profit for the six-month period ended Sept. 30 rose to 752 million U.A.E. dirhams ($205 million) from 284 million dirhams a year earlier, the airline said in an emailed statement. Revenue fell 14% to 19.8 billion dirhams as the airline carried fewer passengers and cargo.
“The months since the global meltdown have really tested our mettle,” Emirates Airline Chairman Sheikh Ahmed bin Saeed Al Maktoum said in an emailed statement.
Emirates cut its expenditure by 16% to 19 billion dirhams, helped by cost-containment measures and lower jet fuel prices, the carrier said.
The jump in Emirates’ profit could send a positive signal regarding the health of Dubai’s tourism and investment-dependent economy. Emirates is considered the jewel in the crown of the business empire of Dubai’s ruler, Sheikh Mohammed bin Rashid al Maktoum.
Once buoyed by soaring oil revenue, airlines in the Gulf region, like others around the world, are now feeling the impact of falling passenger numbers and weakening demand for business and first class traffic.
