Emirates profit rebound amid expanding fleet

Updated 13 November 2012
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Emirates profit rebound amid expanding fleet

DUBAI: The parent company of Dubai-based carrier Emirates said yesterday that operating profit for the first half of the year surged by more than 63 percent as the Middle East's biggest airline expanded routes and benefited from stabilizing fuel prices.
Emirates Group said operating profit rose to 2.37 billion dirhams ($ 645.7 million) for the first half of 2012 compared to 1.449 billion dirhams ($ 394.8 million) in the same period last year.
The 63.6 percent jump is a strong rebound after a sharp drop in profit for the fiscal year ending March 31 due to rising fuel costs. The company also was helped by less volatility across the wider Middle East after last year's Arab Spring uprisings disrupted flight schedules.
Emirates Group includes Emirates airline and other businesses such as cargo operations and the travel service Dnata. Sheikh Ahmed bin Saeed Al Maktoum, the company's chairman and chief executive, said the group rebounded well because of investments into the "infrastructure of both Emirates and Dnata."
Much of the Emirates Group's growth was registered at the Emirates airline, which posted a 15.4 percent increase in passenger traffic to 18.7 million passengers. The group says Emirates airline expanded its fleet to 183 planes in the first half of the year - an increase of nearly 16 percent. Emirates also added 15 new routes in the past year including Ho Chi Minh City, Barcelona, Lisbon, Erbil and Washington.
"Emirates remained focused on its growth and global expansion despite on-going fluctuating exchange rates and ever lingering high fuel prices which accounted for 39 per cent of our expenditures, down 2 percentage points from last year," said Sheikh Ahmed.
Overall, Emirates Group revenue and other operating income rose to 38.2 billion dirhams ($ 10.4 billion) in the first half of the year, an increase of 16 percent compared to the same period last year.
Emirates is locked in strong competition with regional rivals Qatar Airways and Abu Dhabi-based Etihad Airways. But it remains the world's largest airline in terms of international passenger traffic. It now flies to 126 destinations in 74 countries. It has consistently reported a profit for the past 25 years.


Kobe Steel posts first profit in three years despite data fraud scandal

Updated 13 min 44 sec ago
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Kobe Steel posts first profit in three years despite data fraud scandal

TOKYO: Kobe Steel, Japan’s third-biggest steelmaker, on Friday posted its first annual profit in three years, even after admitting to falsifying quality data, a scandal that affected hundreds of customers and hit Japan’s manufacturing prowess.
Kobe Steel reported profit of ¥63.19 billion for the year ended March 31, against a loss of ¥23.05 billion a year earlier.
The result was above its own forecast of ¥45 billion and an estimate of ¥49.56 billion among seven analysts surveyed by Thomson Reuters.
The company predicted a ¥45 billion profit for the year to March 2019, compared with a mean profit forecast of ¥44.62 billion from six analysts.
Kobe Steel, which supplies steel and aluminum parts to manufacturers of cars, planes and trains around the world, admitted to supplying products with falsified specifications to more than 600 customers and admitted the data fraud has been going on for nearly five decades.