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Following a rise in fuel prices, luxury travel mogul Emirates Airlines recorded a 69% year-to-year profit decline, as revenues increased by only 6%.

69% profit decline

2018 saw Emirates Airlines’ revenues increase by 6% to AED 97.9 billion (US$ 26.7 billion), with the help of steady passenger and cargo performance. However, their year-to-year profit reported a 69% decline, earning a total of AED 871 million (US$ 237 million). dnata, on the other hand, recorded profits of AED 1.4 billion (US$ 394 million), up by an AED 321 million (US$ 88 million) gain.

Photograph credit: Emirates

‘Tough’ Year For Emirates Airlines after weak travel demand

There are numerous reasons for last year’s downfall, including weaker travel demand, lower global airfreight and higher oil prices. His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, explained, “2018-19 has been tough, and our performance was not as strong as we would have liked. Higher oil prices and the strengthened US dollar eroded our earnings, even as competition intensified in our key markets. The uptick in global airfreight demand from the previous year appears to have gone into reverse gear, and we also saw travel demand weaken, particularly in our region, impacting both dnata and Emirates.”

Photograph credit: Emirates

No bonuses for Emirates Airlines staff

With a decline in profit, it was confirmed that the airline’s 60,282 employees will not receive a bonus. Last year, the workforce increased by just 2%, and HH Sheikh Saeed said that the Emirates is working on implementing new technologies. He said, “In 2018-19, we were steadfast with our cost discipline while expanding our business and growing revenues. By slowing the recruitment of non-operational roles, and implementing new technology systems and new work structures, we’ve improved productivity and retarded manpower cost increases.”

Photograph credit: Emirates

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