Emirates Profits Slump 76%

Discussion in 'Emirates | Skywards' started by Lufthansa Flyer, Nov 3, 2011.  |  Print Topic

  1. Lufthansa Flyer
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    Reported today, Emirates net profits fell 76%. Future bookings are also slowing down. Wonder if the eagerness to fly A380's everywhere is going to backfire on the short term. They cited a general economic slow down and fuel costs. The article stated that industry wide, expectations are for a reduction of profit of about 50%, so Emirates reduction in profitability is exceeding its peers.

    Here's the story as reported by Bloomberg.
     
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  2. Jimgotkp
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    Does not surprise me considering they fly the A380s pretty much everywhere... If they don't have a rather full flight then they will keep on losing money. They do fly to a lot of locations as well which might be another reason...
     
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  3. Lufthansa Flyer
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    not too long ago they announce plans where they needed to hire an addtl 8000 flight attendants to meet capacity demands. How could they have miscalculated by so much? Fuel costs have been stable for most of this year, even a downward bias, so that didnt make toooooo much sense to me either. I suspect their fuel costs are substantially lower since 30-50% of their refueling is no doubt done at home. I assume the jet fuel is a bit cheaper since its "grown" right in their backyardm compared to other carriers. I could be off on this, but at first glance seems to make sense at least to me.......
     
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  4. Jimgotkp
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    Didn't know about the hiring of 9K FAs... Interesting.... Didn't think about the oil coming from their area and neighboring countries :eek: Will be interesting to see if they will be cutting any routes or start implementing massive cost-cutting measurements
     
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  5. ACMM
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    So they were in a dogfight with Canada and Air Canada over not being allowed to fly more into major airports in Canada ... seems they have bigger problems!
     
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  6. Lufthansa Flyer
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    I think we'll find out how many mothballs can fit into an A380.......And if I'm airbus, I'm not picking up the phone if it has a Dubai area code on the caller ID....No doubt it will be Emirates asking to deferred future aircraft......
     
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  7. ACMM
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    Returning white elephants!
    Anyone recall how many of the humongo beasts they ordered?

     
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  8. Lufthansa Flyer
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    Emirates has ordered 90, 17 in service, 73 to go. Thats almost 4.5x the amount on order as the next biggest A380 buyer, Qantas that has ordered 20.

    a380log.png
     
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  9. ACMM
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    :eek:
    Had not realized the size of the order! Thanks for posting ...
     
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  10. Jimgotkp
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    Holy cow indeed! Might as well defer it to another airline that needs it like TG so I can fly it to NRT in mid-March :p
     
  11. HaveMilesWillTravel
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    Hubris.

    And from the OP's article:

    "Emirates has 90 superjumbos, with 17 in service at the end of October, and is targeting a total of 120."

    Nuts!
     
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  12. Lufthansa Flyer
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    This thread got me thinking more and more about Emirates and their plans. I put a bunch of stats and thoughts together on my blog (link below). I'm thinking Emirates situation may weaken further before it gets better. Then how does it affect Airbus and Boeing if Emirates comes with hat in hand asking to defer or cancel orders.
     
  13. Lufthansa Flyer
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    AND 70 A350's.......41 777's, etc etc
     
  14. HaveMilesWillTravel
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    <offtopic>
    ... which is invisble for those of us who choose to hide people's signature...
    </offtopic>
     
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  15. Lufthansa Flyer
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    www.lufthansaflyer.com
     
  16. eightblack
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    And here's a much better, balanced viewpoint, in my opinion.
    http://www.airlineleader.com/regional-focus/emirates-airline-ends-the-year-on-a-high

    This thread contains nothing but myopic and un-informed opinion...
     
  17. HaveMilesWillTravel
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    Welcome to the internet :)

    The way I read that article, that better/balanced viewpoint appears to be from shortly after the end of Emirates' FY end on March 31, 2011. The Bloomberg article this thread deals with was written 7-8 months later and it seems that Emirates' earnings didn't do so well in the time between the two articles.
     
  18. Lufthansa Flyer
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    your opinion being??? better than ours??:rolleyes:

    Did you forget what the mideast had to deal with since your article was published and what the bloomberg article reflected after this year in the Mideast? There were a few "minor" distractions this year in the Mid east that didnt help Emirates.

    you quote 9 month old information and say that our opinions are uniformed ?? Looks like Emirates numbers were below Emirates' expectations since the time that your referenced article was "printed". :rolleyes:
     
  19. eightblack
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    Actually, yes.
     
  20. Lufthansa Flyer
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    Wow, you certainly are impressive (read it with the sarcasm filter of your trip reports) Well that ends this conversation. I USED to enjoy reading you TR's......
     
  21. FlyIce

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    They do well in excess of 50% of refuelling at home.
    Usually EK planes leave DXB with a full tank and "top up" at the outstation the minumum required to comeback.

    I've been in Dubai recently and while I don't know how much is jet fuel, gasoline for cars is extremely cheap at 1,8 Dirhams, less than 0,40 € or 0,50 USD per litre and clearly less than 2 USD per gallon. In a similar way jet ful can be much cheaper than in Europe or elsewhere.
     
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