Emirates airline has blamed fierce competition, currency devaluations and US travel restrictions as it reported an 82.5 percent plunge in annual profits for the last fiscal year.
The Dubai-based company said net profit at its airline business dropped to $340m in the year to March 31, down from $1.9bn in the previous 12 months – its first decline in annual profit for five years.
The fall was the result of the US dollar’s “relentless rise” against currencies in its key markets and pressure on ticket prices due to stiff competition, the airline said in a statement.
Company chief Sheikh Ahmed bin Saeed al-Maktoum also pointed to “destabilising events which have impacted travel demand during the year”.
These included Britain’s vote to leave the European Union, several attacks in Europe and restrictions on travel to the United States from the Middle East.
In April, Emirates began slashing 20 percent of its 126 weekly flights to the US, one of the airline’s biggest growth potential markets, because of a drop in demand caused by tougher security measures and the Trump administration’s attempts to ban travellers from some Muslim-majority nations…