Emirates defies aviation industry outlook
HH Sheikh Ahmed bin Saeed Al Maktoum announces that Emirates made a profit for its half year, despite industry conditions.
Emirates Group yesterday provided some cheer for the airline industry by reporting profits of AED 164.2 million (US $46 million) for the half year. The results covered the six months ending on September 31st.
“We are very pleased to announce half-yearly profits at a time when confidence in the airline industry has been shaken by the recent tragic events in the US and by the earlier global traffic shortfall,” said HH Sheikh Ahmed bin Saeed Al Maktoum. “Our focus now is to maintain a strict regime of cost management across the company to ensure that our results at the end of this financial year will continue to return a profit.”
The next six month period will inevitably be a stern test for Emirates, as it will for all airlines. Amidst a general decline in passenger numbers, Emirates has taken measures to control costs, including a hiring freeze. Frequencies on some routes have been trimmed, but Emirates says that full service will be resumed gradually.
Aside from its results, Emirates has also defied the short term economic outlook by recently announcing new aircraft orders worth a potential $15 billion. The Government of Dubai has set a target of bringing in 15 million tourist visitors annually by 2010.