Emirates’ cargo volume, first-half profits rise

Bucking regional conflict and a the impact of a strong U.S. dollar, the Emirates Group realized a net profit of US$1 billion for the first half of fiscal year 2015-16, a 65 percent increase over the same period last year. The carrier’s evenues reached $12.6 billion in the same period (April to September), which was down 2.3 percent, year-over-year, from the $12.9 billion earned in the first half of 2014.

The volume of cargo carried by Emirates rose by 10 percent in the first half, y-o-y, to reach 1.25 million tonnes. The increase was made more impressive by coming at a time of falling cargo demand. However, during the same period last year, the carrier had temporarily idled 17 aircraft at its Dubai International hub while runway work was being done, thus reducing lift capacity.

Despite being hit hard by the strong U.S. dollar against other world currencies, the carrier was helped by falling oil prices, leading to one if its best-ever first-half performances. “We made a calculated decision not to hedge our fuel prices, which paid off as fuel prices continued to soften,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO of Emirates Group, which includes Emirates Airline and its global air services provider dnata.

The carrier’s dnata subsidiary performed ground services for nearly 170,000 aircraft in the first half – a 21 percent increase, y-o-y – and handled more than 917,000 tonnes of cargo in the same period, a 10 percent increase over last year’s first half.

The carrier took delivery on 13 widebody aircraft in the first six months of 2015 – eight A380s and five 777s – while retiring four older aircraft, resulting in a net increase of nine aircraft. Emirates has 16 more new aircraft scheduled for delivery before the end of its fiscal year, which is March 31, 2016.