02 September 2011

What Cost Emirates Profits? Just Ask Qantas.

While Emirates continues to rack up impressive profits, other airlines are calling foul and accusing the airline of benefiting from some degree of financial fiddling to justify the seemingly hard profit numbers.

However I believe that the airline makes money the old fashion way - they earn it.

United Airlines Chairman Jeff Smisek was quite effusive on the subject when interviewed last month during GBTA annual convention in Denver.

Embedded in the results of the QANTAS GROUP last month also was a clear indication of the resulting failure of their international business in the face of competition from - well airlines like Emirates.

As reported by Reuters, QF lost more than AU$200 million on its international operations. With net profits being more than $524 million, the airline must be making money hand over fist domestically.

As QF restructures its international business - EK continues to grow its profits on three key sectors.

The Trans Arabian sea routes, The North South ZA to Northern Europe and of course on the Kangeroo routes.

This gives an indication of where EK makes its money. However clearly they have a number of advantages over QF that QF has now come to realize and will address.


1 comment:

Leonardo said...

that's a really stand-out picture...lol