Emirates Group Half-Year Profit Falls 66% as Fuel Costs Surge

Emirates Group reported a 66% fall in half-year profit before tax to AED 4.1 billion on November 5, as the Dubai-based aviation group faced regional conflict disruption and higher fuel prices. Revenue for the period from April 1 to September 30 fell 12% to AED 66.2 billion, the company said. Chairman and chief executive Sheikh Ahmed bin Saeed Al Maktoum said: “It has been a demanding six months.” He said customer demand remained firm and cargo made a strong contribution, while global jet-fuel prices doubled from the same period a year earlier. The group ended September with AED 54.1 billion in cash, compared with AED 59.6 billion at March 31, after aircraft pre-delivery payments, debt obligations and a remaining AED 2 billion dividend to its owner, Investment Corporation of Dubai. Emirates airline, which is part of the wider group, carried 21.8 million passengers, down 22%, and reported revenue of AED 56.9 billion, down 13%. The company said intermittent airspace restrictions and closures reduced its flying schedules, while government travel advisories affected passenger flows. By September 30, the airline was operating 91% of its pre-disruption network, serving 150 airports across 78 countries and territories. The airline's fuel costs before hedging gains rose 60%, despite buying 12% less fuel. Gains of AED 7.1 billion from fuel-risk management limited the net fuel-cost increase to 13%. Its SkyCargo division carried 1.2 million tonnes, down 1%, but cargo revenue rose 52%. The company attributed the revenue increase to reduced airfreight capacity and disruption to marine transport.