EK profit down

[ferris]

EK has announced a reduction in profit for the first half- down 88%

Emirates first half profit slumps 88% - Breaking News - Business - Breaking News (http://news.theage.com.au/business/emirates-first-half-profit-slumps-88-20081110-5lrp.html)

Interesting times.

[White Knight]

Why interesting times Ferris - they still made a profit for the first six months, and with oil prices now way down on the summer, and full aeroplanes (yes, I know it's all about the YIELD)....

[Payscale]

Big picture stuff... they made money on oil when it was 150 USD. Remember it all end up in the same pocket....

[handsome one]

Paycut for EK pilots soon for 2009:ugh:

[roclfly]

Not only Emirates

" HSBC LLoyds Cut lending as credit crunch comes to UAE"

The bubble is about to burst guys so if you are in real state get out now.

[fliion]

The key here is that the fuel budget came in at $469m higher than predicted based on last years fuel prices. Had the spike not taken place the half yearly profit would have equated to $546m...not too shabby.

It appears from reading the bizzo journals that oil is set to stay at considerably lower levels due to declining global demand and that hedges are being put in place for the inevitable future rise once this down-cycle is over (whenever that might be).


The second half of the year is usually more profitable for EK not to mention the Indian long haul carriers are in a shambles...so pay cuts you say????...You must be joking.

f.

[Craic Ore]

I truly hope you guys and Emirates aren't hanging your hats on oil less than $100. This is an anomoly folks.

Of course I could be wrong, the business mags have got SOOOOO right over the last few years, haven't they? "Strong second half growth in 2008," stuff like that; I don't listen to them and much like the media in Dubai, you must read between the lines. AND I definately will never listen to the US government again (including the "non-govt" Bernanke and Paulson - wankers).

Now in the short term oil could be beaten down as the deleveraging continues, but I think people will be very suprised once this process slows or is mostly completed.

Today the IEA reports their latest findings about depletion rates of the main fields around the world. Best case we're hearing 6%, which means about 5 million BPD which cannot be made up by other products (ie LNG, CTL, wind, solar) and the quote I heard that I loved was we'd need to find 3 Saudi Arabias in the next 5 years to meet today's demand. Trust me, there aren't any and will never be any more KSAs found on this planet.

So we can only hope EK is hedging going forward as the profits will turn to losses awfully fast as this scenario unfolds.

[woodja51]

I agree with the credit pipes being closed down a fair bit but that is effecting most things now...

As far as lloyds go - and as a customer and mortgage holder with them they used to be really good but always more conservative than most lenders..

They have managed to add in 100 dh account fees lately , etc which is a bit annoying of course and their customer service basically sucks now ( like all banks really - only the level of incompetence varies)

Perhaps I am silly but if you have depostors money at almost no interest rate payable and then lend it out to someone for more - like >8.5% then it seems to me to be a way to print money!! and the inflation risk is all the depositors!!

I am waiting for vendor finance to become a new thing here - I have thought about offering it to any of my potential purchasers as then any default means you can take the item back.

(pretty easy under Shariah law as it is a rent to buy agreement not western mortgage)
Once someone gets one of these ideas going the banks will start to lose customers to each other - by the way Standard Chartered still lend at about 75% which is international sort of standard...

could be wrong but if you get out of property now ( assuming you bought at the boom) you will only crystallise the loss... stick with good located places and you will be fine in the long run..rents are still stoopidly high!!

happy investing

Woodj

[jack schidt]

So the company has had a dent in first half profits with fuel at $150 a barrell and it had planned it to be at about $104 or something similar. Well oil is now around $60 a barrell and is forcast to be for the next six months. In my calculations, 6 months at $46 higher than planned and 6 months at $44 lower than planned makes a yearly fuel budget on target!!. Also the load factor is only a small percaentage down (2 or 3%), so no MAJOR losses, I guess only 11 weeks profit share this year then Hahahaha!!

[Payscale]

EPR SET

Dubai get a cut of the federal governments oil income, as does the other emirates in the UAE... hence dubai does get money for oil.