Kuala Lumpur: The head of Emirates said yesterday the airline has no plans to cancel the 160 new planes it has ordered - including 58 Airbus A380 superjumbos, despite the global travel slump.
President Tim Clark said the Arab world's biggest carrier is confident of staying profitable for the year through next March, even after its net profit last fiscal year tumbled 72 per cent.
"I like to think that we will be in the black," Clark said in an interview on the sidelines of a two-day aviation conference in Kuala Lumpur.
"We got sufficient cash and we made profits for the last 24 years," he said. "We can afford to take a hit because we haven't squandered that money and we have a cash mountain that allows us to tough it through."
Clark's outlook is upbeat given that the International Air Transport Association warned Monday that global airlines could lose a collective $9 billion (Dh33.05 billion) this year, nearly double previous projections.
Clark said Dubai-based Emirates is committed to its order of 160 Airbus and Boeing planes - worth $62 billion and scheduled to be delivered right through 2018 - which it hopes will meet renewed demand after the world's economy recovers.
It is expected to receive 22 new planes this fiscal year, including six Airbus A380 jets.
"We are taking a long-term view," Clark said. "We are not delaying [delivery of] any aircraft this year," although he said there may be adjustments in the delivery schedule over the next two years pending on market conditions.
Others are not so confident. Thai Airways International Ltd said yesterday it is reviewing its order for six of the Airbus A380s amid worries that flying the jet may not be profitable.
Apart from the 58 A380 planes, Emirates has also ordered 76 Boeing 777-300ER jetliners, making it the biggest buyer of both jets.
Clark expected the aviation industry to stabilise over the next two years but said recovery will take time.
Emirates' passenger traffic is up 13 per cent in April and May from a year ago, although yields - which measures by income per seat, have fallen by up to 25 per cent in some routes, he said.
Clark ruled out any merger talks for Emirates, which already has a 43 per cent stake in SriLankan Airlines.
Emirates' fleet will expand from 126 passenger aircraft now to 196 planes by 2018, making it a dominant global player by then, he said. Its smallest aircraft by the next decade will be the A350-900 with 290 seats and its largest the A380, he said.
Clark said Emirates' huge order, the A380s, was not a mistake but a boost to business as it offers luxury at an economy price.
