Currency fluctuations, security and protectionism will be Emirates’ biggest challenges this year after the Dubai flag carrier posted a 40 per cent rise in annual net profit.
Emirates reported a net profit of Dh4.6 billion for the financial year ended March 31, helped by a drop in oil prices in the second half of the year.
Emirates said that the decline in oil prices provided savings of Dh2bn. While fuel still remains its biggest expense, the airline said it now constitutes about 35 per cent of its operating cost, down from 39 per cent a year earlier.
“Looking ahead, the ongoing uncertainty for many currencies and economic markets around the world will continue to pose a challenge, as well as the looming protectionism in some countries,” said Sheikh Ahmed bin Saeed Al Maktoum, the chairman and chief executive of Emirates.
Sheikh Ahmed’s remarks on protectionism come as American airlines and their unions try to limit the activities of Gulf airlines in the US, with tensions between the two having escalated in recent months.
In January, a US industry group including Delta, United and American Airlines released a 55-page document detailing allegations of unfair government subsidies to Arabian Gulf carriers and other financial incentives that they claim were in breach of the open skies agreement between the two countries.
The US coalition is asking the government of the president, Barack Obama, to start consultations with Gulf countries over fair competition in relation to the open skies treaty.
Emirates has categorically denied such claims and said it would respond to the allegations.
Last year Emirates lost Dh1.7bn in revenue because of the 80-day period of runway repairs at Dubai International Airport. However, the airline reported its second-best results in its history, after the 2010-11 financial year. The carrier’s revenue was up 7 per cent at Dh88.8bn.
Last year Emirates had to scale back its operation in conflict zones such as Iraq, Libya, Syria, and Yemen. The Ebola outbreak in Africa also took its toll on Emirates, leading it to suspend some of its operations in Africa.
“The shooting at a flydubai 737 in Baghdad prompted airlines to cancel flights immediately – it will be these sorts of short-term events and changes that will cause operational changes to have a financial impact, much in the way that the Ebola outbreak in West Africa impeded demand too,” said Saj Ahmad, the chief analyst at StrategicAero Research.
However, the airline managed to carry 49.3 million passengers during the year, up 11 per cent from a year earlier.
Emirates, the world’s biggest operator of the A380 superjumbo aircraft, said that it grew its fleet by 14 jets last year to 231 aircraft.
selgazzar@thenational.ae
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
Profile of MoneyFellows
Founder: Ahmed Wadi
Launched: 2016
Employees: 76
Financing stage: Series A ($4 million)
Investors: Partech, Sawari Ventures, 500 Startups, Dubai Angel Investors, Phoenician Fund
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
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The Baghdad Clock
Shahad Al Rawi, Oneworld
UEFA CHAMPIONS LEAGUE FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT) unless stated
Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid
Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona
TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
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Favourite book: ‘The Art of Learning’ by Josh Waitzkin
Favourite film: Marvel movies
Favourite parkour spot in Dubai: Residence towers in Jumeirah Beach Residence
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The specs
Engine: 6.2-litre supercharged V8
Power: 712hp at 6,100rpm
Torque: 881Nm at 4,800rpm
Transmission: 8-speed auto
Fuel consumption: 19.6 l/100km
Price: Dh380,000
On sale: now
Company%20Profile
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Starring: Winona Ryder, Michael Keaton, Jenny Ortega
Director: Tim Burton
Rating: 3/5