Emirates takes Dh1.8b hit by high oil prices

Dubai: Emirates spent Dh1.8 billion more on fuel than it had budgeted during the first half of its fiscal year and that will affect its fin-ancial performance for the year ending March 31, airline president Tim Clark said.

Emirates had budgeted fuel at $101 per barrel, but the price reached more than $145 during the early part of its financial year, and stayed above $120 per barrel for much of the six-month period.

"We did not believe that prices would go as high as they did and hold [at those levels] as long as they did," Clark told reporters at Dubai International Airport's new Terminal 3, which will open for exclusive use by Emirates on Tuesday.

The airline will announce its half-year results in November.

"They are better than we thought given the terrible problem we had with the fuel price in the first half of the year," Clark said, adding that the high fuel cost will hit the company's bottomline by Dh1.8 billion.

The projected seat factor in the next two months could fall by up to two per cent due to weak travel demand amid a worsening global economy.

However, with oil prices falling, Emirates is hoping for a bounce with increased bookings in the coming months. Emirates plans to improve bookings through ticket price adjustments.

Airline to get second a380

The airline will receive its second A380 on October 24 in Hamburg, where Airbus handed over the first A380 to Emirates on July 28 after a delay of several months.

Additional A380 deliveries are expected in November, December and early next year.

Emirates president Tim Clark said the ongoing labour unrest at US aircraft manufacturer Boeing will hit the airline's deliveries of B777s.

"The Boeing strike has given us some difficulties. We are facing delays. The longer it goes on, the more difficult it is for us in terms of growing our network," he said.