Tuesday, May 29, 2012
Emirates' profit falls over 70% due to soaring jet fuel prices
Emirates Group, the parent group of the Middle East's largest air carrier, spent AED24.3 billion (€5.1 billion) on jet fuel during the 2011-2012 financial year. This is 44.4% more than last year.
The soaring price of fuel saw Emirates' operating costs rise from 16.2% in 2010-2011 to 24%, forcing it to implement fuel surcharges earlier this year.
And while the airline's revenue rose by 14.9% to an AED62.3 billion record high during the 2011-2012 financial year, jet fuel prices impacted its bottom line; its profit fell by 72.1% to AED1.5 billion.
In a press release Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO of Emirates Airline and Emirates Group, said the group is currently facing 'challenging economic times' with the 'volatile exchange rates, coupled with our highest ever fuel bill'.