Emirates has revealed their financial results for the past financial year, ending March 31, 2019.
Emirates profits are down 69% compared to the previous year. The $237 million profit represents a 0.9% profit margin.
Why Emirates profits decreased?
Emirates attributes the decreased profits to the following:
1. Stiff competition across key markets
2. Unfavorable currency impacts, as the USD strengthened relative to many of Emirates’ key markets, which they estimate cost them $156 million.
3. Increased fuel costs, as the average price of jet fuel increased by 22%, after increasing by 15% the year prior; Emirates’ fuel bill for the year was $8.4 billion, which accounts for 32% of their operating costs.
It’s also interesting to note how different regions contributed towards Emirates’ revenue, with no region contributing more than 30%:
1. Europe generated $7.7 billion in revenue (up 6%)
2. East Asia and Australasia generated $7.2 billion in revenue (up 5%)
3. The Americas generated $3.9 billon (up 8%)
4. Africa generated $2.8 billion (up 9%)
5. Gulf and Middle East revenue generated $2.3 billion (down 3%)
6. West Asia and Indian Ocean revenue generated $2.2 billion (up 6%)
All things considered, Emirates’ performance for the past year is pretty impressive, especially when you consider the currency issues and increased fuel prices they’ve dealt with. While their rivals continue to lose money (Etihad because they’re a basket case, and Qatar because of the blockade, and some other factors), Emirates has scaled their route network in a way that makes sense.
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