Emirates 1H net income soars, but warns of headwinds

Emirates Airline saw its net profit nearly quadruple in H1 of its financial year, but warned that stiff competition would put pressure on the aviation industry in H2. The carrier reported 1H net income of AED862m ($235m), up 282% year-over-year (YOY) compared to AED226m a year ago. Overall Emirates Group net income rose 8% to AED1.2b. “This result was driven by increased agility in capacity deployment, with healthy customer demand for Emirates’ products driving improved seat load factors and better margins,” the group said Nov. 7. Revenue for the period was down, however, declining 3% to AED47.3b at the airline and 2% to AED53.3b at the group. The lower revenue was primarily the result of planned capacity reductions during the 45-day southern runway closure at Dubai International Airport, and unfavorable currency movements in Europe, Australia, South Africa, India and Pakistan, the group said. The coming months could also pose challenges, group CEO Sheikh Ahmed bin Saeed Al Maktoum said. “The global outlook is difficult to predict, but we expect the airline and travel industry to continue facing headwinds over the next six months, with stiff competition adding downward pressure on margins,” he said. The group’s profit increase was primarily attributed to a 9% decline in fuel prices, partially offset by the negative currency movements.<br/>