Dubai’s Emirates airline, which last week reported a 69 percent year-on-year decline in profit for the financial year ended March 31, 2019, will not be paying a staff bonus this year.
While the carrier saw revenue increase by 6 percent to AED97.9 billion ($26.7 billion) during the financial year, profits declined 69 percent year-on-year to AED871 million.
Last year, the airline announced that all its employees would receive a five-week bonus for the year, after it reported a profit of $762 million, a year-on-year increase of 124 percent.
Operating costs for the airline increased 8 percent last year. The rising oil prices meant the airline’s fuel bill increased by 25 percent over last year to AED30.8 billion, resulting in the biggest-ever fuel bill for the airline. Fuel accounted for 32 percent of Emirates’ operating costs, compared to 28 percent in 2017-18, and remained the airline’s biggest cost component.
Another key negative factor was the strengthening of the US dollar, which took a AED572 million bite out of the airline’s bottom line.
Emirates carried 58.6 million passengers during the period,