EK half year results are strong

[markis10]

• Emirates Group records a 13% increase in revenues to AED 42.3 billion (US$ 11.5 billion), and 4% increase in net profits to AED 2.2 billion (US$ 600 million)
• Emirates carried 21.5 million passengers (up 15%), added 10 new aircraft (16% increase in capacity), held seat load factor steady at 79.2%, and returned a net profit of AED 1.7 billion (US$ 475 million)
• dnata revenues rose 18% to AED 3.7 billion (US$ 1 billion), with net profits up 13% to AED 458 million (US$ 125 million).

Emirates Announces Half-Year Profits | News | About Emirates | Emirates United Kingdom

 

[Standby]

Whilst the number looks good, given their capital spend & the fact their was no bonus LY( don't think staff got a pay rise either) suggests it's seriously less than they need.when they got a reasonable return 2-3 mth bonuses weren't unusual . Their problem is whilst they keep adding new routes they wud have already picked the eyes out of the most lucrative ones. ME airlines day in the sun are fast fading in this part of the world with unfetted access to Aust by Chinese carriers.

 

[Isochronous]

Whilst the number looks good, given their capital spend & the fact their was no bonus LY( don't think staff got a pay rise either) suggests it's seriously less than they need.when they got a reasonable return 2-3 mth bonuses weren't unusual . Their problem is whilst they keep adding new routes they wud have already picked the eyes out of the most lucrative ones. ME airlines day in the sun are fast fading in this part of the world with unfetted access to Aust by Chinese carriers.

you seriously think Chinese carriers or the standard of Chinese airports and the transit experience matches EK and DXB? I mean Alan Joyce was once quoted in The Australian saying he wanted to hub QF in PVG for onward European connections but not a goer given the visa restrictions and the lack of good lounges there.

 

[Standby]

The Chinese don't match EK in product now & prob won't but look where EK have come from in 10 years.At that time what they had were cheap fares, with limited Frequency. From nowhere in the past couple of years , Air china China Southern/Eastern and a couple of bit players have flooded the market & are now the price leaders that EK & Gulf used to be. Transit Visa restrictions are easing making tougher for incumbents . My comment is others are growing rapidly and EKs run of driving that growth will be much harder to profitably maintain. The Chinese carriers are also putting pressure on SQ & CX which has seen then sharpen their pricing.They are in everyway equal or better than EK and have to protect their Hub and indeed the $$s that thru passengers add to their economy.So the market pressure from equal carriers is also a threat to EK profitability and growth model
I found this story this morning that confirms my initial thoughts,Bottom line with most carriers adding fleet there isnt any upside in the near future
http://news.airwise.com/story/view/1384344254.html