Emirates Profits Jump 67% in One Year
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Emirates Group announced a significant boost in profits in its yearly earnings report released Wednesday.
The Dubai-based airline group’s net income jumped to $1.1 billion, a 67% increase in the 12 calendar months that ended March 31. Sales were also up 8.1%.
The airline group was able to bolster its bottom line partly in thanks to higher oil prices in the Gulf region, Emirates said in its report. Even though higher oil prices meant higher operating costs for the carrier, “it also stoked the embers of economic recovery which contributed to better seat load factors and a modest climb in yields,” its financial report said.
The higher numbers are particularly good news for the world’s largest long-haul carrier and its group after its profits faltered last year among several adverse travel factors, including immigration policy changes (like the US travel ban), new terrorism prevention guidelines (like the electronics ban) and a strong US dollar. That perfect storm brought an 80% drop in profits in Emirates’ last earnings report and forced Emirates Airline to cut 20% of its 126 weekly flights to the US in 2017.
Despite the buoyed profits, Emirates Airline in recent days has also faced staffing shortages of both pilots and cabin crew. The carrier’s financial report states its total employee numbers dropped a little more than 2% in the last year down to about 103,000 workers. The airline said in April it was short-handed about 100-150 pilots, forcing it to cut some routes from its schedule. Emirates President Tim Clark cited demand in the US bouncing back as one of the factors for the shortage.
Emirates also cited the strengthening of other currencies like the euro and the Australian dollar against the US dollar as part of the reason for its economic comeback. However, though many factors improved, business conditions “remained tough,” Emirates Chairman and CEO Ahmed bin Saeed Al Maktoum wrote in his statement.
He cited pressure from low-cost airlines now capable of operating longer routes and political instability in Africa as some of the carrier’s challenges over the course of the year.
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,650
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.