Emirates year-on-year profit declines 69pc

Emirates reported a profit of $237 million for the financial year ending on March 31, a decline of 69 percent from last year’s results.

The airline reasoned high fuel prices, strong competition and unfavourable currency impact.

“Despite stiff competition across its key markets, Emirates increased its revenue by 6 percent to $ 26.7 billion,” said its statement yesterday.

“2018-19 has been tough, and our performance was not as strong as we would have liked,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman of Emirates Airline and Group.

“Higher oil prices and the strengthened US dollar eroded our earnings, even as competition intensified in our key markets,” he said. 

“The uptick in global airfreight demand from the previous year appears to have gone into reverse gear, and we also saw travel demand weaken, particularly in our region, impacting both dnata (an Emirati airport services provider) and Emirates,” he added.

Emirates carried 58.6 million passengers in 2018-19. With seat capacity increasing by 4 percent, the airline achieved a passenger seat factor of 76.8 percent.

Passenger seat factor is an assessment of how efficiently a transport provider fills seats and generates fare revenue.

Emirates currently operates three flights a day from Dhaka via Dubai to over 150 destinations.