Emirates warns of tough six months ahead as profit drops

H1 profit at Emirates plunged to its lowest in a decade, hit by higher fuel costs and unfavourable currency moves, and the Gulf airline said it faced a tough six months ahead. The Dubai-based carrier, which warned earlier this week that earnings were being squeezed, said on Thursday its net profit tumbled 86% to 226m dirhams ($62m) in the six months to Sept. 30. Revenue at the state-owned airline, one of the world’s biggest international carriers, rose 10% to 48.9b dirhams. Chairman Sheikh Ahmed bin Saeed al-Maktoum said higher fuel costs and currency devaluations in markets such as India, Brazil, Angola, and Iran cost the group 4.6 billion dirhams in profit, echoing recent warnings from other airlines. “The next six months will be tough,” he said. H1 profit for Emirates Group, which also includes airport and travel services company dnata, fell 53% to 1.1b dirhams. “We are proactively managing the myriad challenges faced by the airline and travel industry, including the relentless downward pressure on yields, and uncertain economic and political realities in our region and in other parts of the world,” Sheikh Ahmed said. Airline operating costs rose 13% with fuel costs on average up 42%, which Emirates said was largely due to higher oil prices rather than an increase in operations.<br/>