Emirates Airlines registers 52 per cent rise in 2010 profit

DUBAI: Despite regional turmoil, Dubai-based Emirates Airline has posted a 52 per cent rise in net profit in 2010, driven by a surge in passenger numbers and cargo traffic, it was announced here on Tuesday.

The carrier made a net profit of $1.5 billion for the year, despite widespread regional turmoil, Emirates Group said.

Revenue for the airline jumped 25 per cent to reach $14.8 billion, the state-backed company said.

The wider Emirates Group, which includes travel unit Dnata and Emirates SkyCargo, posted a net profit of $1.6 billion for 2010, an increase of 42.9 per cent vis-a-vis the previous year.

Net profit for travel subsidiary Dnata was $152.5 million for the year.

"[Despite] challenges in the form of political instability and shocking natural disasters, we have managed... to produce our best-ever result," said Emirates Chairman Sheikh Ahmed bin Saeed Al Maktoum.

The group would have seen a further $1 billion in profit had rising oil prices not taken a toll on earnings, Sheikh Ahmed said.

Fuel accounts for 43 per cent of Emirates Airline's costs.

The carrier took delivery of eight new aircraft during the year, including seven of its flagship A380s. The airline has a further $13.4 billion worth of aircraft on order.

Emirates dropped plans for a bond to finance expansion after political unrest in the Middle East made rates more expensive and Sheikh Ahmed said the company would not look to issue an initial public offering in the next 18 months.

"With regards to the IPO, there is no need for anything to happen this year or next year. That is all I can say about it at the moment," he said.

The airline said it carried 31.4 million passengers in 2010 and its passenger load factor stood at 80 per cent for the 12-month period.