Emirates Airline profits are down by 86% and things may not get better soon

pulse

November 15, 2018 6:31 PM

Emirates Airline profits fell by 86% during the first six months of the fiscal year to just $62 million on $13.3 billion in revenue.

An Emirates Airbus A380.

The airline reported $62 million in profits on $13.3 billion in revenue for the six-month period ending on September, 30.
Emirates Group, the airline's parent company, saw approximately $1.25 billion in profits wiped out due to fuel costs and currency devaluation in Asia, Africa, and South America.
Emirates Group CEO warns that "the next six months will be tough."

Emirates Airline profits over the first six months of its fiscal year are down a whopping 86% over the same period in 2017. According to Reuters, this is the carrier's worst such period in a decade.

During the six-month period ending on September 30, Emirates reported $62 million in profits on $13.3 billion in revenue. Even though revenue grew by 10%, the airline's profits were severely impacted by a 42% increase in fuel costs.

As a result, Emirates's profit margins for the period is down from 3.7% to just 0.5% while cash assets are down 17% to $4.6 billion.

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The airline's parent company, Emirates Group, saw profits fall 53% to $296 million on $14.8 billion in revenue.

According to Emirates Group chairman and CEO Sheikh Ahmed bin Saeed Al Maktoum, high fuel costs, as well as currency devaluations in India, Brazil, Angola, and Iran, wiped out roughly $1.25 billion in profits.

drive efficiency improvement through the implementation of new technology and business processes."

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