Emirates Airline produced a net profit of US $77 million (e60 million), for the first six months of its current financial year ending 30 September.

This is down 88 per cent compared to $643 million (e501 million) net profits for the same period in 2007, showing the impact of the record fuel prices earlier this year. HH Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group said: “The first half of the year has been very tough for the airline industry, with record fuel prices forcing many carriers to shut shop or consolidate. Emirates has worked hard to manage the impact of high fuel prices on our unit costs, while continuing to grow our business and provide our customers with a quality product and service.

“We’ve made massive investments in our eco-efficient aircraft fleet; in our newly-opened world class airport terminal dedicated to Emirates operations; in strengthening our global route network; and also in the supporting infrastructure for our growing business.

“Recent events show that only the most efficient businesses will survive and prosper, and these investments put us in a strong position to weather the current crunch and future challenges.” Overall, Emirates’ fuel costs were higher than budgeted by $469 million (e366 million).

The drop in profits reflect a 40 per cent increase in airline unit costs per tonne kilometre, with fuel spend more than doubling from last year’s $1.1 billion (e858 million) to $2.5 billion (e1.95 billion). In the first-half of its financial year 2008-09, Emirates continued to post strong business growth, with operating revenues increasing by 31 per cent to $6 billion (e4.68 billion). Passenger traffic (RPKM) was up 11 per cent, cargo tonnes up 13 per cent, and passenger yield increased by 20 per cent.

Seat factor averaged 78.3 per cent, down slightly on 79.7 per cent for last year, against a 13 per cent increase in capacity (ASKMs).

Since April 2008, Emirates has launched passenger services to three new destinations – Kozhikode (Calicut), Guangzhou and Los Angeles, bringing its global network to 100 cities on six continents.

The airline will launch non-stop flights to San Francisco on 15 December. Emirates’ current fleet size is 121 aircraft. Since the beginning of the current financial year, Emirates received delivery of eight new wide body aircraft including two Airbus A380 superjumbo jets.

Emirates currently flies five times weekly from Dubai to Malta via Larnaca in Cyprus, on Mondays, Wednesdays, Fridays, Saturdays and Sundays on the Boeing 777-300. As from 1 December 2008, Emirates will be operating flights to Malta on a daily basis.