Emirates has benefited from a rise in travel demand and a strong cargo performance at Dubai International Airport which has led to record-breaking profits.
The record profit in the first half of Emirates’ latest financial year is due to strong demand during the peak summer season with the reopening of international borders and the easing of coronavirus-related restrictions.
Emirates reported a profit of Dh4 billion ($1.1 billion) for the April to September period, up from a loss of Dh5.8 billion in the same period last year, based on its ability to increase capacity in response to the large surge in demand for travel.
Despite unfavourable currency exchange movements, Emirates said that revenue more than doubled to Dh50.1bn from Dh21.7bn in the same period a year earlier, as the airline carried 20 million passengers, up 228 per cent from the same period last year.
Dubai-based airlines benefited from a strong rebound in passenger traffic over the summer period, which led to higher airfares across the global airline industry as capacity remained limited, compared to pre-epidemic levels, and jet fuel prices increased.
Airlines have benefited from a significant increase in travel demand following two years of Covid-19 lockdowns and limitations, which have given a much-needed boost to airlines that suffered losses, cost reductions, rising debt, and staff layoffs as a result of the pandemic.
Global airlines, however, are facing a combination of high fuel costs, currency fluctuations, aircraft delivery delays, the Russia-Ukraine conflict, higher inflation, and a bleaker economic picture.
Emirates is optimistic about the comeback of travel, having resumed service to destinations that were closed due to the epidemic.
It has also invested more than $2bn to retrofit its aircraft in order to forge codeshare partnerships and establish new routes.
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