Emirates group first-half profit at $46 million

Vimala Vasan

ABU DHABI, Nov. 15

THE Emirates group has announced half-yearly profits of Dhs168.2 million ($46million), bucking the current dismal trend in the airline industry.

The results, for the half-year ended September 30,2001, also compares well to the net profit of Dhs164.2 million ($45 million) during the same period lastyear. The figures are based on unaudited financial results.

The news comes close on the heels of Emirates largest-ever aircraft order at the recent Dubai 2001 Air Show, valued at $15 billion. The order will boost Emirates fleet to 100 aircraft by the year 2010, the group said in a statement.

The Emirates Chairman, Sheikh Ahmed bin Saeed Al-Maktoum, commented: ``We are very pleased to announce half-yearly profits at a time when confidence in the airline industry has been shaken by the recent tragic events in the US, and by the earlier global air traffic shortfall.

He said the focus of the airline is to maintain a strict regime of cost management across the company to ensure that the results at the end of this financial year will continue to return a profit.

For the next six months, Emirates is employing various cost control measures, including a moratorium on staff recruitment. The airline continues to operate to all its destinations. Recent trimming of frequencies on some routes is currently being phased out in a return to normal scheduled services.

The Emirates group's operating revenue of Dhs3.34 billion recorded a strong growth of 14 per cent compared to

Dhs2.95 billion in the same period last year. Even though overall seat capacity increased by over 23.3 per cent, the seat factor was maintained at 74 per cent, compared to 74.7 per cent last year. Cash balances on September 30 were robust at Dhs2,800 million ($763 million).