Trump slump and Brexit blamed as profits fall by 82pc at Emirates

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  • Emirates carried a record 56.1m passengers (up 8pc)
  • Passenger Seat Factor of 75.1pc – down from previous year’s 76.5pc
  • Emirates closed the financial year with US$ 4.3bn of cash assets 
  • Airline raised US$ 7.9bn to fund its fleet growth in a year of record aircraft deliveries

Emirates Chairman and CEO Sheikh Ahmed bin Saeed Al Maktoum blamed a series of “destabilising events” in the world as full-year 2016-17 profit plunged 82pc to €325m.

The last few months have been turbulent for Middle Eastern carriers in particular, with the Muslim-majority nation rulings plus the laptop ban imposed by the new US administration under President Donald Trump.

Emirates airline

Emirates airline

The chairman said the airline’s business capabilities (it carried a record 56.1m passengers) and brand had “helped us to weather the destabilising events which have impacted travel demand during the year”.

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He said the airline had been hit by Britain’s vote to leave the EU, terror attacks in Europe, new US policies on air travel to the US, currency devaluation and a sluggish oil and gas industry.

“Over the years, we have invested to build our business capabilities and brand reputation. We now reap the benefits as these strong foundations have helped us to weather the destabilising events which have impacted travel demand during the year – from the Brexit vote to Europe’s immigration challenges and terror attacks, from the new policies impacting air travel into the US, to currency devaluation and funds repatriation issues in parts of Africa, and the continued knock-on effect of a sluggish oil and gas industry on business confidence and travel demand,” he said.

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Emirates recorded its 29th consecutive year of growth, and reported stable revenue at US$ 23.2bn, after a US$ 572m hit due to unfavourable currency exchange. But its operating costs rose 8pc over the previous financial year as a slightly lower cost of jet fuel was offset by the rising expense of a capacity increase to bring fuel costs up by 6pc.

Meanwhile, in 2016-17, the Group collectively invested US$ 3.7bnin new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives.

 

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