Dubai airline Emirates’ profit badly hit by higher fuel prices – official

Emirates’ cargo business is excelling this year, the airline’s chief commercial officer said

Emirates earnings are being squeezed by higher oil prices, a strong dollar, and instability in the global economy, the airline’s chief commercial officer said on Tuesday.

The warning came ahead of Emirates’ half-year financial results for the period ending September 30, which will be released on Thursday.

“The profit will be badly hit by the fuel,” Thierry Antinori said at an aviation conference in Dubai, adding that the airline’s fuel costs had risen by 40 per cent.

“It’s difficult to manage.”

The airline’s profit more than doubled to Dhs2.8bn ($762m) last year.

Read more: Dubai’s Emirates reports 124% surge in profit

But this year concerns about the global economy and political instability are hurting profit, Antinori said.

“It’s not been a walk in the park,” he said of the first-half.

The airline is optimistic despite pressure on margins; passengers numbers rose in the first half and its cargo unit is “excelling”, Antinori said. “We see the glass half-full. There is always opportunity.”

Also read: Emirates facing ‘double whammy’ – Tim Clark

Chief executive of sister airline flydubai Ghaith al-Ghaith issued a similar warning, telling the conference higher oil prices had made it a tough year.