Emirates profit grows 165% in 1H2009; sees large cost & yield reductions; slow recovery ahead

Despite a strong result for the six months to 30-Sep-2009, Emirates Chairman and Chief Executive, Sheikh Ahmed bin Saeed Al-Maktoum, said that while “some say the green shoots of economy recovery are sprouting”, he expects “it will take at least another year or two, before demand for air transport and travel services starts picking up again.” [3888 words]

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This report contains the following subheadings:

• Strong net profit improvement, but net profit margin remains in single digit territory
• Double-digit pax growth; cargo “in line” with previous year’s levels
• … but substantial yield reductions
• Profits expected to exceed the USD1 billion in FY2010; better 2HFY2010 expected
• Strong cash balance of USD1.8 billion; “excellent liquidity position”
• To continue to use export credit finance options
• Will not be effected by Dubai World Fallout
• To receive two “big aircraft” per month over next 12 years; no “large delays” to A380 delivery schedule for Emirates
• Current fleet operating “flat out”
• No aircraft orders at Dubai Air Show, but in talks to acquire “tens” more widebody aircraft
• No alliance with Etihad Airways and no IPO on the cards
• Increases Germany fares “under protest”; blasts protectionism
• Emirates to support Senegal Airlines
• Global network expansion continues 

This report contains the following charts and tables:

• Emirates financial highlights for six months ended 30-Sep-2009 
• Emirates Airline net profit margin: FY2003/04 to 1HFY09/10
• Emirates Airlines RPK growth and Passenger load factor: FY2004/05 to 1HFY09/10
• Emirates Airline RPK growth and ASK growth: FY2004/05 to 1HFY09/10
• Emirates Dubai Air Show Orders
• Emirates Airlines President’s (Tim Clark) Speech to the European Aviation Club: 12-Nov-2009 
• Major airline alliances & members