Emirates Airline half-year profit plummets 75 pct

The United Arab Emirates (UAE) international carrier Emirates Airline reported Wednesday a 75 percent profit decline in the six-month period from April to September which stood at 214 million U.S. dollars compared to 849 million dollars in the same period last year.

The Dubai government-controlled carrier said in an e-mailed statement that its revenue, including other operating income, of 11.4 billion dollars was down by 1 percent compared with 11.5 billion dollars recorded last year.

"This is due to the unfavourable currency environment - where the US dollar continued to strengthen against most other major currencies, and increased competition resulting in lower average fares," said the airline.

The airline was also impacted by currency devaluation and hard currency shortage in some African countries, as well as decreased travel demand due to the ongoing economic slump, the statement added.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive Officer of Emirates Airline and Group added that "increased competition, as well as the sustained economic and political uncertainty in many parts of the world has added downward pressure on prices as well as dampened travel demand."

He also said that "Against this backdrop, the Group has remained profitable and our solid business foundations continue to stand us in good stead."

Earlier last month, Emirate Airline President Sir Tim Clark said the Brexit referendum on June 23 in the United Kingdom led to some repercussions on the airline's operations as well, and that the carrier was considering reducing services to destinations in Africa.

During the first six months of the financial year, Emirates received 16 wide-body aircraft comprised of eight Airbus A380s, and eight Boeing 777s, with 20 more new aircraft scheduled for delivery before the end of the financial year.

Furthermore, the airline retired 19 older aircraft from its fleet with a further eight to be returned by 31 March 2017.

Emirates expanded its global route network by launching passenger services to four new destinations including Yinchuan and Zhengzhou in China, Yangon in Myanmar, and Hanoi in Vietnam.

As of 30 Sept. Emirates' global network spanned 155 destinations in 82 countries, with Fort Lauderdale to come online on 15 December 2016.

Emirates has 248 planes in operation, three less than a year ago.

On August 4, 2016, Emirates lost a Boeing 777 passenger plane flying from Thiruvananthapuram, India, to Dubai, which crashed during an emergency landing in Dubai International Airport, killing one firefighter during the rescue operations.

The 300 passengers including 18 crew onboard managed to escape the blaze and were unharmed however. Endit