Dubai’s Emirates Airline expects lower oil prices to translate into fuel savings in the financial year ending this month but is braced for foreign exchange hits in markets such as Europe, India and Russia, its chief operating officer said.
Adel Al Redha did not put a figure on the fuel costs but said their proportion of the company’s total costs was expected to fall to 35-37 per cent, from 42 per cent in the previous 12 months.
“There has been a direct reduction to operating costs with the reduction of fuel price,” he told reporters at the sidelines of a border security conference in Dubai.
Jet fuel prices have tracked a steep drop in oil prices since June last year. The International Air Transport Association (IATA) has forecast a combined $25 billion in 2015 net profit for airlines, up from 19.9 billion estimated profit in 2014, mainly driven by lower fuel costs.
11/03/15 Reuters/Khaleej Times
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Adel Al Redha did not put a figure on the fuel costs but said their proportion of the company’s total costs was expected to fall to 35-37 per cent, from 42 per cent in the previous 12 months.
“There has been a direct reduction to operating costs with the reduction of fuel price,” he told reporters at the sidelines of a border security conference in Dubai.
Jet fuel prices have tracked a steep drop in oil prices since June last year. The International Air Transport Association (IATA) has forecast a combined $25 billion in 2015 net profit for airlines, up from 19.9 billion estimated profit in 2014, mainly driven by lower fuel costs.
11/03/15 Reuters/Khaleej Times
