Emirates bounced back from a challenging 2018 by reporting a 282 percent net profit increase for HY1 in its fiscal year FY19-20. Profit was AED 862 million versus 226 million the same period last year.
The United Arab Emirates (UAE)-airline delivered a steady and positive performance, chairman Sheik Ahmed Bin Saeed Al Maktoum said about this April-October period.
Emirates Group (including Emirates airline and airport ground handler dnata) improved net profit by 8 percent to AED 1.2 billion, with revenues down 2 percent to 53.3 billion.
Airline revenues were 3 percent down to AED 47.3 billion. At 29.6 million, passenger numbers down 2 percent while the seat load factor went up 2.3 percent to 81.1 percent.
The HY1-result was affected by the closure of Dubai International’s southern runway in April-May. During this 45-day period, Emirates cut capacity by 5 percent. The overall capacity for the six-month period was down 7 percent to 29.7 billion ATKM. Emirates retired 6 aircraft, with 2 more to leave the fleet before next April.
With yield slightly up, costs were down 8 percent compared to an increase of 13 percent during the same period in 2018. Higher fuel costs were to blame back then but 13 percent lower fuel costs this first half-year saved AED 2 billion and helped the airline to recover. Unfavorable currency costs adversely affected the airline by 1.2 billion.
Sheikh Ahmed expects a challenging HY2 as the economy faces headwinds and stiff competition adds pressure on margins.