Emirates profit sinks to a 10-year low as jet fuel bill takes off
Gulf carrier Emirates has reported its lowest profit in 10 years, blaming a stronger US dollar and sky-high fuel costs.
The full-service airline said its net profit fell 69 per cent fell to 871m dirhams (£182m) in the year to 31 March.
Read more: Thomas Cook shares leap following Lufthansa bid for airline business
The number of passengers flying Dubai-based Emirates inched up 0.2 per cent to 58.6m – but that shows its growth rate is the weakest in 15 years.
The full-service carrier has rapidly expanded its fleet and network in the past two decades to become one of the world's leading airlines, as traditional flag-carriers struggled against budget airlines.
Revenue increased six per cent to 97.9bn dirhams, in part due to increased cargo volumes and fare increases.
Raising ticket prices helped Emirates log a three per cent increase in passenger margin, despite it filling fewer seats – its planes were on average only 76.9 per cent full over the year.
The airline's chief executive and chairman, Sheikh Ahmed bin Saeed Al Maktoum, said its performance was not as strong as he'd have liked, but blamed external factors.
"Higher oil prices and the strengthened US dollar eroded our earnings, even as competition intensified in our key markets," he said.
Read more: Airline passengers face new ticket fee to cover cost of carrier collapses
"The uptick in global airfreight demand from the previous year appears to have gone into reverse gear, and we also saw travel demand weaken, particularly in our region, impacting both Dnata and Emirates".
Emirates cancelled dozens of superjumbo A380 plane orders with Airbus in February and will instead buy smaller A350s and A330s after the European planemaker scrapped production of the world's biggest passenger jet, and one of Emirates' workhorses.