(Bloomberg) -- Emirates Group, operator of the world’s largest long-haul carrier, reported an 8% decline in first-half profit after the United Arab Emirates introduced a corporate tax.
Profit after tax fell to 9.3 billion dirhams ($2.5 billion), from 10.1 billion dirhams year-on-year, the Dubai-based company said in a statement Thursday. Revenue rose 5% to 70.8 billion dirhams.
“We expect customer demand to remain strong for the rest of 2024-25, and we look forward to increasing our capacity,” Chairman and Chief Executive Officer Sheikh Ahmed bin Saeed Al Maktoum said.
The state-owned carrier has enjoyed huge passenger flows through its hub in Dubai, helping boost profit even as the airline industry grapples with geopolitical tensions. In order to accommodate its growth plans, Dubai’s government is proceeding with a $35 billion expansion of its second hub, Al Maktoum International Airport, which authorities say will eventually become home to Emirates’ operations.
The Gulf carrier has a large fleet of aircraft on order, mostly for the still-uncertified Boeing Co. 777X model. The company has said the long delays in aircraft deliveries from the US planemaker as well as Airbus SE are disrupting its growth plans and costing it business.
(Updates with context, growth plans)
©2024 Bloomberg L.P.