Emirates profit rises 50% on fuel windfall, long-haul traffic

Dubai: Emirates Group boosted full-year profit 50 per cent as the world’s biggest international airline expanded its wide-body jet fleet to siphon more long-haul travelers through Dubai and benefited from a decision not to hedge against fuel-price fluctuations.
Net income for the 12 months ended March 31 rose to Dh8.2 billion ($2.2 billion), Emirates said on Tuesday. Emirates Airline’s profit increased 56 per cent to Dh7.1 billion even as revenue fell four per cent to Dh85 billion. The company saved Dh9 billion as oil prices declined, while the strong dollar impacted revenue by Dh6 billion, Chairman and Chief Executive Officer Sheikh Ahmed bin Saeed Al Maktoum said.
"The strong dollar against major currencies will continue to be a challenge," Sheikh Ahmed said at a press conference in Dubai. ”We expect low oil prices to be a double edge sword, good for operating costs but bad for global business and consumer confidence. There’s pressure on yields, so we invest profits into the business."
The airline benefited from a 28 per cent oil-price drop in the fiscal year after opting not to hedge against crude. The airline added 29 Airbus Group A380s and Boeing 777s to what was already the largest wide-body fleet, expanding its hub and winning more long-haul transfer traffic from rivals.
Abu Dhabi-based Etihad Airways, the Gulf No. 3, posted net income of $103 million for the 2015 calendar year, up from $73 million a year earlier. Qatar Airways, the No. 2, plans to publish numbers in June.
The International Air Transport Association estimated in December that Middle Eastern airlines would earn a collective $1.4 billion in 2015, rising to $1.7 billion this year.