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Thu 8 Sep 2016 01:40 PM

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Dubai's Emirates mulls extra charges for seat selection, baggage

Airline says it is looking to boost its ancillary revenues; also considering introduction of premium economy class cabins

Dubai's Emirates mulls extra charges for seat selection, baggage
Tim Clark, president of Emirates Airline.

Dubai-based Emirates airline is looking to boost its ancillary revenues and is taking a serious look at introducing a premium economy class on its planes as it battles falling yields, its president said on Thursday.

The carrier is considering introducing charges for seat selection and additional baggage charges, Tim Clark told an airlines conference in London.

"We cannot sit back and wait for things to get better," he said.

Emirates posted record profits for the 2015/16 financial year, with earnings up by 56 percent to $1.6 billion.

The world’s largest international carrier saw its passenger numbers rise by 8 percent to 51.9 million over the same period, while capacity increased by 11 percent.

The airline said that fuel had been its biggest expense over the past year, at $5.4 billion and 26 percent of operating costs, while the strong US dollar had eroded its revenues by $1.6 billion, and its profits by $1.1 billion.

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Althaf 3 years ago

Good move, else how can Emirates recover the compensation paid.

Frankiejo 3 years ago

"Can't wait for things to get better" Fuel cost is one of the most important elements for airlines. I read 40% of cost. With fuel at one of the lowest levels Emirates should be raking in the profits. How about a comprehensive plan to hedge future fuel needs as a route of not sitting back and waiting

my2fills 3 years ago

2015 - Emirates makes a record profit of US$ 1.9 billion but even with oil prices remaining low, they continue to rip off Dubai residents with unjustified high flight ticket costs. Its 35% cheaper to fly from Europe to Australia return than it is from Dubai to Australia return. So much to looking after people from Dubai.

James A 3 years ago

When you fly point to point, it always cost more. that is the same for all airlines.
That has been highlighted in the news a few times.

Slyvi 3 years ago

Very good!!! This is ridiculous!! As is is people are considering other airlines due to the difference in fares between EK and others. If that itself is not bad enough they want to charge additional fares!!! EK is losing on a large chunk of business to Qatar airways as their fares are reasonable on the US sector and their service is also good. Dubai would lose out of the transit passengers' too! It would be great idea not to be so suicdal dear EK!

Flyernorm 3 years ago

Emirates should introduce Premium Economy at reasonable price ASAP and then it would see sufficient income increase to make it unecessary to tinker with the other items

Ray Jacobs 3 years ago

"Cannot wait for things to get better"

Didn't Emirates record their best result ever this year ??????

Need to be careful though that your customers don't feel you are squeezing every available cent from them - all in the name of ???

One Guy 3 years ago

Emirates is slowly slipping down the pecking order now.......

Not in Dubai 3 years ago

Perhaps Mr Clark could also discuss how he will raise the morale of his staff. Pilots flying long hours. Huge turnover in Cabin Crew and now falling yields.

Telcoguy 3 years ago

Premium economy would more likely erode business class revenue in routes less than 4-5 hours given how service has slipped in business.

People are surprisingly tariff sensitive, a vast majority (over 99%, and no it is not made up, several travel aggregators have discusses this) chose the absolutely cheapest ticket even if difference is a few cents.