‘Outlook not improving'
The Emirates Group has blamed an 80.4% slump in airline profits on "unprecedented" fuel costs and falling demand.
Airline operations brought in a profit of AED982m (€194m) for the year ending March 31, down from the previous year's record AED5bn (€989m).
Overall the group recorded a net profit of AED1.49bn (€295m) compared to AED5.3bn (€1.1bn) year-on-year.
Sheikh Ahmed bin Saeed Al-Maktoum, Emirates Group chairman and ceo, said the outlook for the coming year was "not improving" with business and first class demand "still weak in many markets".
But Emirates said it had remained profitable "despite unprecedented challenges for the airline and travel industry."
Sheikh Ahmed said: "We have returned our 21st consecutive year of net profit, and although it is a 72% decrease on the previous year's all-time record profit, under the circumstances this is a satisfactory result."
Emirates has suffered from record fuel prices in the first six months, which rose to $147 a barrel.
But the group saw a 10.4% growth in revenue to AED46.3bn from AED41.9bn despite an industry-wide fall in demand.
"No one could have predicted the scale of the worldwide recession which is now impacting every country on earth. Emirates has worked hard to cope with this downturn by maintaining our agility and responsiveness in a volatile economic environment," Sheikh Ahmed added.
Fuel remained Emirate's largest single item of spending, amounting to 36.2% of operating costs, the group said.
Emirates also blamed lower profits and margins on declining yields and the strengthening of the US dollar.
Sheikh Ahmed said he believed 2009/10 would remain "one of satisfactory growth for the Emirates Group".
He said: "Our development plans remain unchanged. We have weathered the last twelve months with satisfactory growth, maintained the quality of our award-winning service, and maintained staff numbers in the face of an unsettled future.
" We will continue to forge ahead to build the airline, Dnata ( a travel company) and the many subsidiary companies that are part of the Emirates Group."
Emirates said its fleet and route expansion plans would go ahead including the delivery of 18 new aircraft this year.
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