Emirates posts over 400pc profit

Emirates Airlines yesterday posted $964 million profit -- a 416 percent increase from last year's $187 million -- amid worldwide market instability and economic uncertainty.
The Emirates Group, the parent company of the airline, posted $1.1 billion net profit as of March 31, also a record profit increase of 248 percent. The group's cash balance grew to $3.4 billion, 43.3 percent up from the previous year.
“It has been an exceptional year of continued profitability against a backdrop of the worst global recession in generations," said Emirates Chief Executive Officer Sheikh Ahmed bin Saeed al-Maktoum.
He was speaking at a press conference to release the 2009-10 annual report of Emirates Group comprising Emirates Airline, Dnata and their subsidiary companies, at its headquarters in Dubai.
"The increase in passenger numbers is attributable not only to our position at the centre of the new Silk Road between East and West but also to our commitment to increasing our network and service standards."
The Emirates CEO said the company faced the same challenges as other carriers affected by the global financial crisis and the slowdown in global travel, but Emirates had benefited from the good performance of the Middle East region.
"We are fortunate to be operating in the Middle East," he said, where passenger growth was at 8.5 percent in 2009, according to the International Air Transport Association.
"Our cash position is excellent," Sheikh Ahmed said, maintaining that banks were "queuing" to provide finance for the purchase of eight new aircraft scheduled to be delivered this year.
He noted, however, that the company has resorted to freezing recruitment while some staff had to take unpaid leave as part of cost containment.
The CEO also insisted in the statement that Emirates was not subsidised by the government, which is currently facing a mountain of debt after the global crisis thwarted its rapid economic growth.
"Emirates is incredibly proud of the fact that we are unsubsidised and wholly unprotected from foreign competition in our home market," he said.
Emirates, serving 102 destinations in 62 countries, is considered one of the world's fastest growing airlines. It has a fleet of 142 aircraft and firm orders for 146 more planes.
It is the largest single customer of Airbus' A380 superjumbo with eight units already in service and 50 more on order.
Emirates has also become the largest operator of Boeing's 777 long-haul aircraft, with 85 of the planes in service and another 21 on order.