Emirates profit nosedives 88%

Dubai-based airline Emirates said on Monday profit plummeted 88 percent in the first six months of its current fiscal year due to record oil prices, which have sent the cost of fuel soaring.

Emirates, the largest Arab airline, posted net income of 284 million dirhams ($77 million) for the six months ending Sept. 30, down from 2.36 billion dirhams for the same period last year.

The airline said fuel costs more than doubled to 9.2 billion dirhams for the period. It said fuel costs were 1.7 billion dirhams higher than budgeted.

Emirates Group chairman and CEO Sheikh Ahmed bin Saeed Al-Maktoum in a statement described the first half of the year as "very tough", but expected "a robust second half of the financial year" provided there was no further fallout from the current global financial crisis.

Operating revenues increased by 31 percent to 22.1 billion dirhams for the period, while passenger traffic was up 11 percent and cargo tonnage was up 13 percent, the airline said.

Emirates said its cash position on as of Sept. 30 was 8.4 billion dirhams, compared to 12.6 billion dirhams a year earlier.

Emirates currently has a fleet of 121 aircraft, including two Airbus A380 superjumbos. The airline flies to 100 cities worldwide.

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