Emirates profit hit by sky-high fuel costs, strong dollar

Emirates will “work smart and hard” to improve its performance after the Gulf airline’s profit hit a decade low as soaring fuel costs and a strong dollar took a toll on earnings, while passenger growth stalled. After years of growth, during which it has become one of the world’s biggest airlines as other long-established national carriers have struggled, Dubai-based, state-owned Emirates warned last week profit would be lower than previous years. It revealed just how badly it had fared on Thursday, reporting a 69% fall in net profit to 871m dirhams ($237m) in the year to March 31. Meanwhile, the number of passengers flying Emirates rose 0.2% to 58.6m, its weakest growth rate in at least 15 years, while cargo increased 1.4% to 2.7m tonnes. Chairman Sheikh Ahmed bin Saeed al-Maktoum said in a statement that the year had been “tough”, with higher oil prices, a strong dollar and stiffer competition, adding “our performance was not as strong as we would have liked”. While revenue at the airline rose 6% to 97.9b dirhams, its profit fell to its lowest level since 2009. And profit at Emirates Group, which includes other units, fell 43.7% to 2.3b dirhams, its lowest since 2012.<br/>