Dubai: A strong rebound in passenger and cargo traffic will likely see Dubai-based Emirates airline post record full year profit next week.
But the Middle East's largest carrier doesn't expect the government to sell part of the company in an initial public offering before 2013, Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and chairman and chief executive of Emirates airline and Group, said on Tuesday.
Profit for the fiscal year ending March 31, "...will be very positive...I think the results will be better than last year," Shaikh Ahmad told Zawya Dow Jones.
Last year Emirates posted a fivefold rise in full-year profit to Dh3.5 billion as it cut costs and passenger numbers surged. In November, it said first-half net profit was Dh3.4 billion.
Carriers in the Middle East have, by and large, been able to weather one of the worst two-year periods for the global aviation industry that has seen a global recession, soaring fuel costs, and last year's Icelandic volcano eruption.
"We are one month into the new financial year, and hopefully we will do the same despite the fact that certain markets are tough but we will be able to deal with this...and we are always positive," said Shaikh Ahmad.
No shares yet
Shaikh Ahmad, who is also chairman of government-owned conglomerate Dubai World, said the airline was in no hurry to sell shares to the public.
Dubai's government said in November it was considering selling some of its most prized assets, including a stake in flagship carrier Emirates, but added at the time that it "is reluctant to sell assets at the current time given current market conditions."
"You launch an IPO because you need the money, in our case we don't have an issue, we don't need the money," said Shaikh Ahmad.
"I always say that it is up to the Dubai government to decide when to launch an IPO. If they need to do it we don't have any problem.
"If they say OK, then within one year we will be ready to do it. But at the time being an IPO is out of the question for 2011 or 2012," he added.
In terms of the bond market, Shaikh Ahmad described current market conditions as "favourable" but wouldn't be rushing to issue more paper.
The airline in March fully repaid a $500 million bond that was listed on the Luxembourg Stock Exchange.
"If we have to do it [issue bonds], then we will do it at the right time, and at the right price," said Shaikh Ahmad.
With crude perched well above the $100 a barrel mark, the issue of the oil prices is a "shared" one for the entire aviation industry, said Shaikh Ahmad.
