DUBAI, United Arab Emirates (AP) – The Middle East’s biggest airline, Emirates, said Tuesday its profits were up by about 56 percent to $1.9 billion in the last fiscal year largely due to lower oil prices that drove down fuel costs.
The Dubai government-owned airline said revenue, however, fell in 2015-2016 by four percent to $23.2 billion from $24.2 billion in 2014, mostly because of a stronger U.S. dollar that impacted currencies in many markets where the Emirates operates, including in its base in the United Arab Emirates where the dirham is pegged to the dollar.
Emirates President Tim Clark told The Associated Press that despite the drop in revenue, the airline’s fuel bill decreased to $5.4 billion over the last year, comprising around 26 percent of operating costs, compared to 35 percent the year before. Still, fuel remains the airline’s biggest cost.
“The revenue fall has been well managed, let me say that. It could have been a lot worse,” said Clark, who added that the company was also able to save on its supply costs.
The airline, which marked its 30th anniversary last year, has posted profits for 28 consecutive years.