Strong business growth continues ' operating revenues up 31%, cargo tons up 13%, passenger traffic up 11%; positive outlook for next six months

The Emirates Group reported a net profit of US $77 million for the first six months of its current financial year ending September 30th, 2008. Compared to a net profit of US $643 million for the same period in 2007, there is an 88% decrease, showing the strong impact of fuel prices earlier this year.
 In the first-half of its financial year 2008-09, despite challenges from fuel prices, Emirates continued to post strong business growth, with operating revenues increasing by 31% to US $6 billion. Passenger traffic (RPKM) was up 11%, cargo tons up 13%, and passenger yield increased by 20%. 

Seat factor averaged 78.3%, down slightly on 79.7% for last year, against a 13% increase in capacity (ASKMs).
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Emirates' cash position on September 30th was US $2.3 billion, compared to US $3.4 billion six months earlier. This was after paying dividends to the Government relating to the previous financial year, as well as funding pre-delivery payments for future aircraft deliveries and the upgrade program for some of its aircraft fleet.

 HH Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group said: 'The first half of the year has been very tough for the airline industry, with record fuel prices forcing many carriers to shut shop or consolidate. Emirates has worked hard to manage the impact of high fuel prices on our unit costs, while continuing to grow our business and provide our customers with a quality product and service.
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'We've made massive investments in our eco-efficient aircraft fleet; in our newly-opened world class airport terminal dedicated to Emirates operations; in strengthening our global route network; and also in the supporting infrastructure for our growing business. Recent events show that only the most efficient businesses will survive and prosper, and these investments put us in a strong position to weather the current crunch and future challenges.'
'Sheikh Ahmed added: 'Our business fundamentals are solid, and providing there is no further fall-out from the current global financial situation, we anticipate a robust second half of the financial year.'

 Crude oil prices averaged US $122 per barrel for the first six months of the financial year, up from an average of US $67 for the same period last year, while the differential between crude and aviation fuel was also up from an average of US $16 per barrel to US $28 per barrel. Overall, Emirates' fuel costs were higher than budgeted by US $469 million. 

The drop in profits reflect a 40% increase in airline unit costs per ton kilometer, with fuel spend more than doubling from last year's US $1.1 billion to US $2.5 billion.