The latest Emirates Airline news shows how the Iran war has hit the Dubai-based carrier's earnings. Emirates' half-year profit fell by two-thirds, reports say, as fewer transit passengers passed through Gulf hubs during the conflict. The Iran war has also changed which airlines are flying out of Dubai.
Profit, fuel and cargo
Transit passengers change planes at a hub instead of starting or ending their journey there. When they stay away, hub airlines lose a large share of their ticket sales. The closure of the Strait of Hormuz, the narrow sea passage through which much of the Gulf's oil is shipped, also sent jet fuel prices soaring.
What kept the airline in the black was a healthy cargo business and fuel hedges. A fuel hedge is a financial contract that fixes a price for fuel in advance, which can soften a sudden jump in costs. The sources do not give the size of the profit that remains.
Dubai skies and rival airlines
Drones targeted Dubai International in March, and authorities briefly suspended foreign airlines. They were then limited to one round trip a day, while Emirates and its sister carrier flydubai ran hundreds of flights. Some Indian carriers have complained that the arrangement gives an uneven playing field.
Most of Emirates' rivals have not yet returned to Dubai. British Airways this week resumed its London-Dubai route, the first time it has flown the route since the war began.
Timeline: what has happened so far
- March: drones targeted Dubai International, and authorities briefly suspended foreign airlines.
- Later: foreign airlines were limited to one round trip a day, while Emirates and flydubai ran hundreds of flights.
- This week: British Airways resumed its London-Dubai route, its first return since the war began.
Aasan alfaaz mein
Jang ki wajah se Emirates ka half-year munafa do-tihai kam ho gaya hai, kyunke transit passengers Gulf ke hubs se kam guzre aur jet fuel mehnga ho gaya. Airline ko cargo business aur fuel hedges ne munafe mein rakha. Pakistani musafiron ke liye Dubai ke raaste safar ka mahol abhi badal raha hai, aur British Airways ki wapsi se kuch behtari ke ishaare milte hain.
