DUBAI, 27 April 2007 — Emirates airline posted a 25 percent surge in annual profits to $844 million in the financial year 2006-07 despite high fuel costs.
The carrier’s revenues soared to $8.1 billion against $6.3 billion the previous year, the company said yesterday at Madinat Jumeirah here.
Net profits hit AED3.1 billion ($844 million) compared to AED2.5 billion ($674 million) the previous year, Sheikh Ahmed ibn Saeed Al-Maktoum, Emirates chairman and chief executive, said. “Pressure from fuel costs has softened our profits,” he said, noting that the fuel surcharge added on tickets has covered only 50 percent of added fuel costs, which in turn represented 29 percent of operational costs.
He also said that the delay in the delivery of the 43 long-haul Airbus A380s has affected the company’s expansion plans. The first of these aircraft is now to be delivered in August 2008, he said.
But the chairman said the airline is still planning to order more Airbus A380 super-jumbos. “Actually, we are planning to buy more,” of the A380 long-haul aircraft” he said.
Total revenues of the whole Emirates Group, which includes the air travel services branch, Dnata, and other subsidiaries reached AED31.1 billion ($8.5 billion), he said.
The group’s profits reached AED3.5 billion ($942 million) from $762 million in the period under review.
