The Hindu Business Line : Emirates profit up 51 pc in H1

EMIRATES has achieved record half-yearly profits of Dirhams 612 million ($167 million), 51 per cent up on the corresponding period last year, due to a series of initiatives to upgrade customer service.

The results, based on unaudited financial figures, compare with net profits of Dhs 404.2 million ($110 million) last year. Higher passenger and cargo yields more than offset a small short-term fall in seat factors during the SARS outbreak and Iraq conflict, according to a statement from the Emirates Group.

Emirates' Chairman, Sheikh Ahmed bin Saeed Al-Maktoum, said: "The results confirm that our policy of tailoring services tightly to meet customers' needs is proving highly successful, and helping us to exceed even our own growth expectations."

The airlines' seat factor fell by just 8.2 per cent points to 69.8 per cent, with the impact of SARS and military action in Iraq, but recovered in the second quarter to 77.5 per cent.

Passengers carried rose 17.7 per cent to 4.8 million for the half-year, compared to 4.1 million for the 2002-03 half-year.

Emirates is investing heavily in improvements to its customer service. It has $26 billion worth of new aircraft on order and is expanding its route network. While services to Brisbane, Lagos and Accra is expected to start soon, flights to North America begin next year.

Recent customer service improvements include the opening of a first and business class check-in terminal at Dubai International Airport, self check-ins for frequent flyers and online Internet booking facilities.

Work is also under way on building a new Dubai passenger terminal and launching a series of in-flight innovations to attract customers to first and business class.

Emirates cargo revenue grew by a remarkable 49 per cent. Cargo tonnages rose 29 per cent to 315,000 tonnes, compared with 245,000 for the corresponding period last year.

Liquidity on September 30, 2003, was robust at Dhs 3.95 billion ($1.08 billion) compared to Dhs 3.88 billion, ($1.04 billion) in the corresponding period last year.

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Emirates profit up 51 pc in H1