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Emirates reports surging first-half profit, predicts demand recovery in 1-2 years
Emirates appears to have flown untouched through the industry downturn, reporting a AED752 million ($204.7 million) profit in the fiscal semester ended Sept. 30, more than double the AED284 million earned in the year-ago period.
"Emirates remained focused on its long-term strategy despite the global economic slowdown. We have continued to invest in our eco-efficient aircraft fleet, in strengthening our global route network and also in supporting the infrastructure for our growing business," Chairman and CEO Ahmed bin Saeed Al Maktoum said. "Unlike others in the industry, Emirates did not cut back on its product, service or people. Instead, we invested in these areas and looked to our people to develop ever more innovative ways to manage costs, improve efficiencies, reallocate resources, and drive alternative strategies for the business."
EK added eight aircraft and two destinations (Durban and Luanda) during the semester and now operates 139 planes to 101 destinations. It plans to take 10 additional aircraft before the end of its fiscal year on March 31. It said it raised aircraft financing of AED3.3 billion in the first half.
Six-month revenue fell 13.5% year-over-year to AED19.8 billion, which EK said was a reflection of "lower passenger and cargo yields." Expenses sank 15.8% to AED19 billion. Traffic measured in RPKs rose 21% against a 22% increase in capacity that dropped load factor 0.8 point to 77.5%. Cargo carriage was "in line" with the year-ago period.
Al Maktoum said, "We expect it will take at least another year or two before demand for air transport and travel services starts picking up again. In the meantime, Emirates is well-placed to weather the rest of the storm."
Yesterday the airline announced a 13% increase in seat capacity to the Asia/Pacific beginning next month, comprising a fourth daily service to Bangkok, a third daily to Sydney, the 13th and 14th weekly flights to Manila and an 11th weekly service to Jakarta.
"Asian markets are rebounding with reports of resurgent traffic at key airports in the region. We are confident of seeing a recovery soon and are introducing additional capacity to serve the increasing demand," Senior VP- Commercial Operations-Far East and Australasia Richa