Text size:

  • Small
  • Normal
  • Large
Where Dubai rents have risen and fallen, Q1 2014. Click here

Unrest will trim Emirates' strong profit

The region's civilian unrest is causing some travelers to cancel or postpone travel plans, Emirates said.

Regional unrest will dent Emirates Airline's financial results after demand dropped in recent weeks across its worldwide network, the company said.

But the airline is still expected to post a robust profit for its financial year ending on March 31 after reporting a record first-half profit of US$925 million (Dh3.39 billion).

Tim Clark, the president of the Dubai carrier, said flights across its global network were running 75 per cent full compared with the 82 per cent typical of this time of the year.

"The effect on the seat factor as a result of the unrest in the Arab world has been measurable the last six weeks," he said in Washington on Wednesday. "It's a pity because it's been a very strong year for us."

Emirates is the Middle East's largest airline and the world's largest carrier by international capacity. The airline, which owns some 25 subsidiary companies in travel, retail and hospitality, is also one of the most profitable carriers in the world.

The regional instability has caused business travel to fall across the affected countries, which include Egypt, Tunisia and Yemen, while Chinese business and tourist arrivals into the region had "disappeared", Mr Clark told Air Transport Intelligence magazine.

Instability in some other African countries apart from Egypt and Tunisia has hurt demand, while some travellers to Middle Eastern countries such as Jordan and Lebanon have altered travel plans on fears that unrest could spread to those areas, he said.

But the Emirates president predicted the disruptions to the carrier's global network would subside soon.

"In April we'll be in good shape," he said. If demand remained suppressed, the airline would reallocate its capacity from the affected countries to higher-demand areas, he said.

The unrest illustrates the cyclical fortunes of the airline industry, after the ash cloud crisis in Europe last year and concerns recently over higher fuel prices.

When an Icelandic volcano erupted last year, sending up an ash cloud that disrupted aviation, Emirates said the resulting European flight cancellations were costing it $10m a day.

 

igale@thenational.ae

Back to the top

More articles


Editor's Picks

 Would you like it in blue? An Afghan shopkeeper shows a burqa to a customer at a bazaar in Herat. (Aref Karimi / AFP /  April 13, 2014)

In pictures: Best business images for the week to April 24, 2014

Here are some of the best business images for the week to April 24, 2014.

 Room with a view from one of the 21 duplex penthouses located in the Gate Towers sky-bridge. The sports courts and swimming pools can be seen below. Courtesy Alda

In pictures: Aldar’s Gate Towers Penthouse Collection on Reem Island

Aldar launched its Gate Towers Penthouse Collection at Cityscape Abu Dhabi. The launch features 21 penthouses spanning the skybridge, with each having a private indoor pool and incredible views.

 Cityscape Abu Dhabi 2014 will run until April 24, 2014. Fatima Al Marzooqi / The National.

In pictures: Cityscape Abu Dhabi 2014 opens
at Adnec

Key developments and master plans are being unveiled at this year’s property exhibition in the capital.

 Marina Square apartments Reem Island: Q1 2% rise. Studio - Dh65-68,000. 1BR - Dh75-95,000. 2BR - Dh110-145,000. 3BR - Dh170-190,000. Q1 2013-Q1 2014 no change. Sammy Dallal / The National

In pictures: Where Abu Dhabi rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Abu Dhabi have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National