c-emirates-RTXVSQO-Ina Fassbender

How Emirates’ profit dropped from close to $2 billion to $340 million in a year

$340 million

Emirates’ profit went from $1.9 billion in the fiscal year ending in 2016 to $340 million in the fiscal year ending in 2017.

Published   |  Photo by Reuters/Ina Fassbender
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$340 million

Emirates’ profit

c-emirates-RTXVSQO-Ina Fassbender
$340 million

This is the first drop in five years and a blow for Emirates, the biggest carrier in the Persian Gulf and one of the biggest in the world by number of passengers.

c-emirates-RTXVSQO-Ina Fassbender
$340 million

The company pointed to recent political events that caused a drop in bookings: Trump’s Muslim ban, Brexit, and terrorist attacks in Europe.

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$340 million

Dubai-based Emirates also pointed to more regional causes for the decline.

c-dubai-RTXYQVU-Ahmed Jadallah

Reuters/Ahmed Jadallah

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$340 million

A fall in commodity prices and a slowdown in the oil-and-gas sector are forcing Middle Eastern travelers to save money and purchase fewer business class tickets.

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$340 million

Also, in recent years, Emirates and other Middle Eastern airlines grew their fleets, offering more seats and forcing ticket prices down.

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$340 million

But after expanding coverage and fleet ambitiously in recent years, the carrier is cutting staff and reducing flights.

Published

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