Emirates Full Year Profit Falls 82.5 Percent
Emirates reported its full year results on Thursday, showing a fall in net profit of 82.5 percent.
The UAE carrier’s profit drop, to AED1.25 billion dirhams (USD$340.3 million), was its first in five years, as it responded to a “turbulent year”.
Operating profit fell 70.8 percent to AED2.43 billion on unchanged revenue of AED85 billion.
Emirates said challenges during the year to end March included “actions taken by the US government relating to the issuance of entry visas, heightened security vetting, and restrictions on electronic devices in aircraft cabins.
“All of which had a direct impact on consumer interest and demand for air travel into the US, one of our biggest growth potential markets,” the airline said in its annual report.
Despite the challenges, Emirates carried just over 56 million passengers during the year, a rise of 8.1 percent. Passenger revenue grew by only 0.5 percent to AED68.4 billion.
RPK passenger traffic grew by 8.4 percent on an ASM capacity increase of 10.3 percent. Load factor fell as a result to 75.1 percent, a 1.4 percentage point drop. Passenger yield fell 7.2 percent.
Cargo revenue dropped 5 percent to AED10.6 billion as prices fell and exchange rates weighed. The airline carried 2.7 percent more cargo during the year as fleet additions added to belly capacity.