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 said about this April-October period.

Emirates Group (including 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 went up 2.3 percent to 81.1 percent.

The HY1-result was affected by the closure of Dubai ’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 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 adds pressure on margins.

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