On the surface the Gulf carriers have had a rough year (or so). As far as US flights go, between the ”Muslim ban” and the electronics ban, they’ve faced more challenges on their US-bound flights than before. Furthermore, they’ve faced increased competition globally, as more airlines try to compete directly with them on price.
Continue reading: Emirates Profits Up 111% Compared To Last Year
Share your questions, experiences, and thoughts below.
So given the profit, they shouldn’t be pushing so hard on significant cost cutting. They need to understand sometimes the cost cutting may drive customers away instead of keeping the old and attracting the new.
Emirates absolutely runs a true operation with true profits. They run a very organized, tight ship.
$452 million in profit is less bad, but not great. By comparison, Alaska Airlines, the fifth largest in the US, had a 2016 profit of $814 million.
Also, query how reliable the numbers are. The UAE does not require its companies to comply with any internationally recognized accounting standard.
@Yvonne I agree. Hopefully these cost-cutting measures intended to keep them on course and avoid hemoraging money will be pared back as they now know that they don't need to do more.
Accounting standards differ in most major territories, so no company is likely to have the same "results" in a different regime to their own. After all, Enron was "profitable" for many years under the US's "rigorous" accounting standards...
When it comes to accounting I've always believed that cash is a fact but everything else is an opinion.
@ Anon, re-read please. it's only for the first half of the year. so potentially, as much as AS.
Thanks for catching that. My basic point still more or less stands though. Emirates is really not that profitable compared to US airlines. Alaska is pretty small carrier from a global perspective, having a fleet of around 150 737s. Emirates has a fleet of around 240 wide bodies, but has profits on par with a fairly small US carrier (assuming you trust their numbers).
Yvonne - But "the old" also need to understand that "the new" aren't attracted to the same frills they are, so shedding some of the old to get a greater number of new customers is often worthwhile. British Airways being a perfect example.