Emirates Airlines, among the largest airlines in the world, has released its earnings report that shows the carrier’s full-year profit is the weakest it has returned in a decade.
The firm’s report comes out at a time when a strong dollar, rising oil prices, as well as increased competition have combined to erode expected profits.
The airline sent warnings last week that its profits for this year are expected to go down compared to last years. Reporting its results for the month of January to March, the Dubai based carrier said it did not perform that well and its net profit declined by 69% to 871 million dirhams- approximately $237 million.
Emirates saw a 6 percent revenue increase to 97.9 billion dirhams. Commenting on the performance of the airline, Chairman Sheikh Ahmed bin Saeed al- Maktoum said the year wasn’t a good one for them and performance did not happen as they expected.
The profit the airline group posted is the lowest made since the 686 million dirhams profit in March 2009. As Sheikh Ahmed observes, higher oil prices, as well as a stronger dollar, affected Emirates earnings. Similarly, the presence of stiff competition in the market also contributed to the low profits.
Profits at Emirates Group which is comprised of other units including airport services went down by 43.7 percent to 2.3 billion dirhams for the whole year profit.
Comparatively, the airline industry has not had the best of results in the first quarter of the year- including earnings by major aircraft maker Boeing.
Boeing’s first-quarter results missed earnings and revenue estimates, majorly out of the effects various reactions from passengers, world governments and airlines following the tragic crashes involving two Boeing 737 Max planes- all within six months.
Compared to last year’s price per share which $3.64 in quarter one, the Chicago based airline was posted a decrease of 17 cents per share to $3.16 this year.
The company’s earned revenue was $22.9 billion falling below the analyst’s prediction of $23.51. In last year the same period, the company had received revenue of $23.38 billion.