Dubai-based Emirates' net profit slipped to the lowest level in more than a decade. Gulf airlines have suffered a severe crisis six months after high fuel cost and unmatched currencies began.
For the year ended September 30, net profit was down 86%. The company reported a net profit of 62 million dollars. One of the largest international airlines in the world has risen to 48.9 billion dirhams.
Sheikh Ahmed bin Said Al Maktoum, chairman of the chairman, said that the cost of high fuel costs in India, Brazil, Angola and Iran has generated 4.6 billion dirhams.
"Although the next six months are hard," he said in a statement.
Emirates Group and DANTA, which account for 53 per cent of the company's first quarter earnings, and a 1.1 billion dirham for Emirates Travel.
"The uncertainties of our region and other parts of the economy are pre-emptying the challenges facing aircraft and travel industries, financial and political realities." – said Sheikh Ahmed.
Fuel cost has risen to 42%. Oil prices are higher than the cost of operating expenses.
The number of passengers increased by 30 per cent to 30.1 million. Cargo exports declined by 1 per cent to 1.3 million tons.
The work force of the group has shrunk by about 1,400 employees and one percent. This is due to natural drop-down and recruitment.
The airline does not mention the name of a pilot shortage. This year it was forced to cancel some flights. The shortage of cabin crews, which the Emirates denied, was reported in May.