18-Nov-2009 11:54 AM

Emirates expects USD1 billion profit next year; no problems with financing

Emirates announced it expects to generate a USD1 billion profit in FY2010, due to cost reduction measures (Emirates Business 24/7, 17-Nov-2009). The carrier also stated it expects to take delivery of “two big aircraft” per month over the next 12 years, including A380 and B777 aircraft. Emirates President, Tim Clark, added the carrier expects “20% growth in profits” for the current fiscal years, due to lower fuel costs. Emirates Chairman and CEO, Sheikh Ahmed bin Saeed Al Maktoum, stated the carrier faces no difficulty financing the delivery of the aircraft, thanks to an “excellent” liquidity position (Reuters, 17-Nov-2009).

Emirates:We crossed the USD1 billion mark in profits the year before last, with profits resting at USD1.4 billion. And then last year our profits fell due to the economic recession. I don't think this year we would be able to achieve those numbers. But it is quite possible we may cross the USD1 billion profit mark in the following year. This is because we are taking out all the extra costs. And on an average, over the next 12 years, we would be taking deliveries of two big aircraft per month - the Airbus A380 or the Boeing 777,” Maurice Flanagan, Executive Vice-Chairman. Source: Emirates Business 24/7, 17-Nov-2009.

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