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64882
Tue, 06/09/2009 - 13:43
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https://oananews.org//node/64882
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Emirates to post profit while industry suffers loss
Emirates, the Dubai-based global carrier, will make a profit for the financial year ending March 31, 2010, according to the airline's President, Tim Clark.
"We are budgeting for a moderate profit this financial year, as the global airline industry makes a collective loss of US$9 billion (Dh33bn) in 2009," Clark told Emirates Business, on the sidelines of the 65th annual general meeting of the International Air Transport Association (Iata) in Kuala Lumpur yesterday.
Emirates is one of the few airlines that made a profit in the last financial year, despite the global economic slowdown. The carrier recorded a full year net profit of Dh982 million for the financial year 2008-09, down 80.4 per cent over its 2007-08 record profit of Dh5 billion. Declining passenger numbers and record fuel prices were cited as the reasons.
Fuel costs remain the top expenditure for the airline for the fifth year running, accounting for a record 36.2 per cent of its operating costs in its last financial year.
"We were down on the year before, but the fact that we made money was the exception," Clark said. "We will see how the summer goes. We have full loads. With regards to yield, we have had a lot of pricing initiatives to try and improve the business. The main thing we are concerned about is keeping cash solid and growing it."
Emirates' load factor last week rested at about 74 per cent, according to Clark. "It will start to rise and get into the low-80s again. That's with a 14 or 15 per cent growth in capacity," he said.
"We are budgeting for a moderate profit this financial year, as the global airline industry makes a collective loss of US$9 billion (Dh33bn) in 2009," Clark told Emirates Business, on the sidelines of the 65th annual general meeting of the International Air Transport Association (Iata) in Kuala Lumpur yesterday.
Emirates is one of the few airlines that made a profit in the last financial year, despite the global economic slowdown. The carrier recorded a full year net profit of Dh982 million for the financial year 2008-09, down 80.4 per cent over its 2007-08 record profit of Dh5 billion. Declining passenger numbers and record fuel prices were cited as the reasons.
Fuel costs remain the top expenditure for the airline for the fifth year running, accounting for a record 36.2 per cent of its operating costs in its last financial year.
"We were down on the year before, but the fact that we made money was the exception," Clark said. "We will see how the summer goes. We have full loads. With regards to yield, we have had a lot of pricing initiatives to try and improve the business. The main thing we are concerned about is keeping cash solid and growing it."
Emirates' load factor last week rested at about 74 per cent, according to Clark. "It will start to rise and get into the low-80s again. That's with a 14 or 15 per cent growth in capacity," he said.
