Emirates Group reports flat volume, plunging profits in first half

SkyCargo, the cargo arm of Emirates, has apparently tapped the brakes in the first half of its current fiscal year, reporting flat volume, year-over-year, at 1.3 million tonnes, for the six-month period ended Sept 30. Volume was not the only disappointment for the Dubai-based carrier, with net profit in the half down 75 percent, y-o-y, to US$214 million, as revenue fell 1 percent to $11.4 billion in the same period.

The group’s handling arm, dnata, fared better during the first half, reporting a jump in its cargo handle by 28 percent, y-o-y, to 1.2 million tonnes, which drove revenues up 14 percent to $1.6 billion.

The latest sour news for the Middle East’s largest carrier comes just months after it invested some $600 million in a new pharma-handling warehouse at Dubai International Airport (DXB).

For those looking for a positive spin, even Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO of Emirates Airline and Group, had cold water to pour on the situation. “Our performance for the first half of the 2016-17 financial year continues to be impacted by the strong U.S. dollar against other major currencies,” he said. “Increased competition, as well as the sustained economic and political uncertainty in many parts of the world, has added downward pressure on prices, as well as dampened travel demand.”

He added: “The bleak global economic outlook appears to be the new norm, with no immediate resolution in sight.”