Emirates Profit Doubles As Conditions Improve

UAE airline Emirates more than doubled its full year profit to AED2.8 billion dirhams (USD$762 million), with economic recovery and exchange rates helping the airline recover from the previous year’s downturn.

At the group level, which includes ground handler dnata, the year to March 31 brought a 67 percent profit uplift to AED4.1 billion (USD$1.1 billion), its 30th consecutive profitable year.

Airline revenue grew 8.8 percent to AED91.2 billion as the geopolitical challenges of the previous financial year eased and passenger numbers improved 4.3 percent to 58.5 million.

Operating costs also rose, to AED88.2 billion, a 6.8 percent increase, as the cost of fuel jumped 17.9 percent to AED24.7 billion. Staff costs were up by a modest 1.7 percent at just over AED13 billion, but aircraft operating leases rose by a much chunkier 14.8 percent to AED11.7 billion.

Emirates added eight Airbus A380s and nine Boeing 777s to its fleet during the year and phased out eight older aircraft in its ongoing fleet renewal.

During 2017 the Dubai-based airline ordered 40 Boeing 787-10 Dreamliners in a USD$15.1 billion list price deal, and in February this year added to its A380 orders with commitments for 20 aircraft and options on another 16. The additional A380 deal would be worth USD$16 billion at list prices if all options are taken up.

At the end of the financial year Emirates operated 268 aircraft - 102 Airbus A380s, 153 Boeing 777s and 13 Boeing 777F freighters - to 155 destinations in 83 countries.