Emirates Group blames 64% profit drop on "bleak global economic outlook"

The group said it had recorded a profit of $364 million for the six-month period ending on September 30 having recorded a 1% increase in revenues to $12.7 billion.

It also revealed Emirates revenue fell 1% to $11.4 billion with 28 million passengers carried, a 9% increase year on year.

In contrast, dnata revenue grew 14% to $1.6 billion, with strong growth in aircraft, cargo and catering volumes handled.

Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of the Emirates Airline and group, said the fall in profit came the year after the group recorded one of its “best ever” half year profit performances in the same period in 2015.

He added: “Our performance for the first half of the 2016-17 financial year continues to be impacted by the strong US dollar against other major currencies.

“Increased competition, as well as the sustained economic and political uncertainty in many parts of the world has added downward pressure on prices as well as dampened travel demand.

“The bleak global economic outlook appears to be the new norm, with no immediate resolution in sight.

“Against this backdrop, the group has remained profitable and our solid business foundations continue to stand us in good stead.

“In the first six months of this year, both Emirates and dnata continued to grow in capability and capacity.

“Our past investments in product and services are now paying off, enabling us to retain valued clients and attract new customers - reflected in the airline’s passenger growth of 2.3 million.

“We continue to make strategic investments, because we know we have to work even harder for every customer, and make every dollar spent go even further through innovation and driving efficiency across our business.”