Despite an increase in passengers opting to travel with Emirates, which is the flagship airline of Dubai, the average profit has drastically reduced. Industry experts have put this blame on high fuel prices and weak currencies in some significant markets. These latest changes suggest that this gulf carrier is not immune to the rising industry pressure, which may affect its policy of offering cheapest international air ticket rates. In the past two years, the airline has seen high gains, owing to the addition of new destination routes and increased frequency of flights. However, it is now facing serious monetary issues, which might hurt other global players as well.
The airline, which presently serves around 137 destinations across the globe, reported a net profit of 1.75 billion dirhams (USD 475 million) for the 6 months ended on September 30. This is extremely less as compared to the 1.7 billion dirhams of the previous year period, despite a 15 per cent boost in passenger traffic. As per experts, this is an extremely grim situation that shows no sign of relief in the coming future.
The high fuel prices, accounting for 39 per cent of expenditures, and the fluctuating currency market may now end up increasing Emirates flight fares as the airline cannot afford to fly at fewer profits for long. The carrier did not divulge further details, but as an instance, the region of Indian Ocean and West Asia drew 10.6 per cent revenue for the carrier in the last fiscal, and the Indian currency has gone down by about 15 per cent against the US dollar in the current year.
The company, like any other international carrier, has put in billions of dollars to increase its fleet size and routes. It has started operating new routes in India, Middle East, Europe and America, like Ahmedabad to Toronto Flights. However, in such a scenario, it might have to rethink over its future course of action.