Dubai’s Emirates Airline posted a small increase in first half profit, but said high fuel prices dragged on earnings.
Emirates said net profit in the six-month period increased by 2% to US$475 million, compared with the same period a year earlier, as passenger traffic increased 15% to 21.5 million.
Revenues at the carrier were 12% higher at US$10.8 billion, while seat factor was maintained at about 79%.
“High fuel prices, accounting for 39% of our expenditures, and the unfavourable currency exchange environment continue to eat into our profits,” said chairman and chief executive Sheikh Ahmed bin Saeed Al Maktoum.
The Dubai government-owned airline currently flies to 137 destinations in 77 countries. It has posted a profit in every year of operation and full-year growth has slowed only twice – in 2009 and 2011.
“Emirates is now the world’s third largest airline – but as yet the wheels show no sign of coming off,” Sudeep Ghai, managing partner at London-based consultancy Athena Aviation, told the Wall Street Journal.
