Profits at the aviation industry support company Dubai Aerospace Enterprise (DAE) were down sharply last year.
In a statement yesterday, the company, which specialises in maintenance, repair and overhaul as well as aircraft leasing, said net profit for last year was US$7.3 million, down from $121m in 2011.
The announcement came just days after the government-controlled DAE cancelled an order for five Boeing 747 freighters.
DAE's revenue for last year increased to $1.94 billion, from $1.8bn a year earlier, while profit excluding non-recurring items was up 35 per cent, at $110m, the company said.
"DAE was successful yet again in growing its core income," said the DAE managing director, Khalifa Al Daboos. "Our business prospects are strong, and the company is poised for growth in 2013 and beyond".
Last week Boeing confirmed that DAE had cancelled its remaining order for five 747-8 freighters with a value of $1.76bn. DAE Capital, the Dubai-based firm's leasing unit, had originally ordered 10 747-8s as part of a 200 aircraft buying spree from Boeing and Airbus worth $27bn, at the Dubai air show in 2007. DAE has since cancelled all its Airbus orders, and the other five 747-8s were cancelled in December. However, the company still has an order for five twin-engined Boeing 777 freighters.
DAE, which operates in four continents and employs more than 4,000 people, currently has a fleet of 52 Airbus and Boeing jets, including 10 Boeing 777s and 16 737s, 15 Airbus A320/319s and 11 A330s, according to its website.
This latest cancellation leaves Boeing with 54 unfilled orders for the 747-8, and the US plane maker has announced it would cut its monthly production level to 1.75 planes from two starting in early 2014.