Emirates cargo volume down by 8%; blames trade tensions and unrest
November 8, 2019: The Emirates Group today announced its half-year results for its 2019-20 financial year with Emirates airline registering 8 percent decrease and dnata showing 6 percent decrease in cargo volume amid global trade tensions and unrest in key cargo markets.
November 8, 2019: The Emirates Group today announced its half-year results for its 2019-20 financial year with Emirates airline registering 8 percent decrease and dnata showing 6 percent decrease in cargo volume amid global trade tensions and unrest in key cargo markets. Emirates airline has uplifted a cargo volume of 1.2 million tonnes and dnata carried handled 1.5 million tonnes between April 1 and September 30, 2019.
Group revenue was $14.5 billion for the first six months of 2019-20, down 2% from $ 14.8 billion during the same period last year. The revenue decline was due to capacity reductions during the 45-day Southern Runway closure at Dubai International airport (DXB), and unfavourable currency movements in Europe, Australia, South Africa, India, and Pakistan.
Profitability was up 8% compared to the same period last year, with the Group reporting a 2019-20 half-year net profit of AED 1.2 billion (US$ 320 million). The profit improvement was primarily due to the decline in fuel prices of 9% compared to the same period last year, however, the gain from lower fuel costs was partially offset by negative currency movements.
"The Emirates Group delivered a steady and positive performance in the first half of 2019-20, by adapting our strategies to navigate the tough trading conditions and social-political uncertainty in many markets around the world. Both Emirates and dnata worked hard to minimise the impact of the planned runway renovations at DXB on our business and on our customers. We also kept a tight rein on controllable costs and continued to drive efficiency improvement, while ensuring that our resources were deployed nimbly to capitalise on areas of opportunity,” Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.
“The global outlook is difficult to predict, but we expect the airline and travel industry to continue facing headwinds over the next six months with stiff competition adding downward pressure on margins. As a Group, we remain focused on developing our business, and we will continue to invest in new capabilities that empower our people, and enable us to offer even better products, services, and experiences for our customers,” he added.