DUBAI — Emirates airline posted 62 percent rise in profit in fiscal 2007-08, airline officials said yesterday. Despite rising fuel costs, profits at Emirates hit the AED5 billion mark in the fiscal year up to March 31, Sheikh Ahmad ibn Saeed Al-Maktoum, president of Dubai Civil Aviation Authority and chairman and chief executive of Emirates Group said.
“It was another record year for the group, despite the challenging business climate, particularly in the second six months, where the soaring cost of jet fuel made a big dent,” Al-Maktoum told reporters.
Sheikh Ahmed said Emirates had spent $500 million more on fuel in 2007-08 than budgeted for due to record high oil prices, which this week almost broke through the $120-mark.
Fuel was the main expenditure for the carrier, representing 31 percent of total operating costs, he said. Surging fuel costs would continue to be a major challenge for the group, he added.
The high costs were offset by an increase in both passenger and cargo numbers, which sharply boosted revenues.
Overall revenues stood at AED36.4 billion, up 27 percent. Flights to Europe and the Americas contributed the biggest segment at AED13.6 billion, up from AED10.5 billion previously, followed by East Asia and Australasia.
Emirates revenues included AED404 million in damages from parties who failed to meet contracts they had with the airline, a “large” part of it from Airbus for late delivery of its A380 super-jumbo jets.
“We are very confident they will be delivered, (but) we will be very disappointed if they do not deliver,” Sheikh Ahmed said.
Emirates President Tim Clark told reporters on Tuesday he was confident of taking delivery of four A380s by the end of this year and another by next March. Airbus’ targets called for 13 deliveries of the world’s biggest passenger aircraft in 2008. Emirates’ first flight using the A380 is expected to be on October 1 from Dubai to New York. The airline will initially use the super-jumbo on its New York, London and Sydney-Auckland services. Emirates said it expects to have 163 aircraft by 2010.
Emirates recorded a 21 percent rise in passengers carried, while cargo rose 10.9 percent to 1.3 million tons. The airline said its load factor — the percentage of seats filled — was 79.8 percent in the fiscal year, up from 76.2 percent.
Passenger revenues rose 29.5 percent to AED28.1 billion while cargo revenues climbed to AED6 billion, from AED5 billion.
Sheikh Ahmed confirmed during the conference the carrier had no immediate plans for an initial public offering (IPO), saying a decision was yet to be made by the government.