Business | Aviation
Emirates airline reports 62 per cent rise in profit
Profits at Emirates airline rose 62 per cent, reaching Dh5 billion in the fiscal year of 2007/2008, the carrier reported on Wednesday.
- By Saifur Rahman, Business Editor
- Published: 11:45 April 30, 2008
- Despite record high fuel prices, rising passenger and cargo numbers helped boost Emirates profits significantly.
- Image Credit: Gulf News archive
Dubai: Emirates airline experienced a 62 per cent rise in profit in the fiscal year of 2007/2008, the carrier reported on Wednesday.
Despite rising fuel costs, profits at Emirates hit the Dh5 billion mark in the fiscal year up to March 31, Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman and Chief Executive of Emirates Group said.
Overall profit for Emirates Group rose 54.1 per cent, representing a Dh47 billion contribution to Dubai's economy. This figure stands for almost a quarter of the GDP.
Emirates Group's revenue in 2006 was Dh31.1 billion, but now stands at Dh41.2 billion.
Dnata, the travel agency arm for Emirates Group, made a net profit of Dh305 million.
The rising price of oil has affected profits with Emirates' allotted fuel budget being exceeded by $500 million as well.
Speaking at the event, Shaikh Ahmad said: “The fuel cost is impacting on our bottom line heavily, representing 31 per cent of operating costs''.
Despite record high fuel prices that have greatly affected the airline industry, rising passenger and cargo numbers helped boost Emirates profits significantly.
Passenger traffic rose by 21 per cent to 21.2 million, while cargo rose by 10.9 per cent to 1.3 million tones.
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