ISSN: 1391 - 0531
Sunday, November 12, 2006
Vol. 41 - No 24
Financial Times

Emirates’ half-year performance hits new record

Emirates has announced yet another record performance with a net profit for the first six months of the current financial year 2006-07 at Dhs 1.2 billion (US$ 323 million), up 29 per cent compared to Dhs 922 million (US$ 251 million) recorded in the same period last year.

The results reflect a strong revenue performance driven by robust passenger and cargo demand, and better yields, which softened the impact of high fuel prices on operating costs. Emirates’ operating revenue of Dhs 13.5 billion (US$3.67 billion) for the half-year represented a strong growth of 30 per cent compared to revenue of Dhs 10.4 billion (US$2.84 billion) during the same period last year, a airline statement said.

Passenger revenue recorded a 31 percent growth, with passengers carried increasing by 1.41 million or 20 percent to 8.39 million, compared to 6.98 million for the first half-year of 2005-06. Seat factor improved to 76.4 percent for the period, reflecting the robust demand in tandem with an increased passenger seat capacity (in terms of available seat kilometres) of 25 per cent, versus the same period last year.

Emirates SkyCargo continued its steady revenue growth, posting an increase of 29 per cent to Dhs 2.7 billion, with cargo tonnage up by 20 per cent to 577,455 tonnes, compared with 482,643 tonnes for the same period last year, and maintained its contribution at about 21 percent of the airline’s transport revenue.

Emirates’ Chairman & Chief Executive, H.H. Sheikh Ahmed bin Saeed Al Maktoum, said: "Emirates has delivered another excellent half-year performance, maintaining capacity and revenue growth despite the challenges faced by high fuel costs.

“Emirates has been in a strong position to tap into the robust demand for air travel globally by expanding its route network with a new high-capacity aircraft, and investing in passenger services such as dedicated airport lounges across Europe, Far East, Australia and Asia. In the coming months, we intend to continue with our growth plans while keeping a close watch on costs.”

Fuel costs for the first six months crossed US$1 billion and remained the top expenditure accounting for 30.7 per cent of total operating costs, up from 27.2 per cent for the full period last year. Measures taken by Emirates to remain on target include stringent cost-containment and efficiency drives, but like other airlines, Emirates has been forced to maintain fuel surcharges on tickets, which do not fully cover the escalating costs.

 
Top to the page


Copyright 2006 Wijeya Newspapers Ltd.Colombo. Sri Lanka.