HH Sheikh Ahmed bin Saeed Al-Maktoum, Emirate’s Chairman and CEO, announced an 88% drop in half-year profits.

Dubai-based airline, Emirates, has announced half-year profits of Dhs 284 million (around £49m) for the first six months of the 2008 financial year – down 88% compared with the same period last year due to record fuel prices.

This decrease has occurred despite a growth of 31% in operating revenues and 11% in passenger traffic.

Fuel prices in 2008 have reached record levels, averaging US$122 (about £78) per barrel during the first six months compared with an average $67 in 2007 – Emirates spent a total of Dhs 1.7 billion on fuel, more than double that of last year.

HH Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and CEO of Emirates, commented on the results: “The first half of the year has been very tough for the airline industry, with record fuel prices forcing many carriers to shut shop or consolidate. Emirates has worked hard to manage the impact of high fuel prices on our unit costs, while continuing to grow our business and provide our customers with a quality product and service.

“Our business fundamentals are solid, and providing there is no further fall-out from the current global financial situation, we anticipate a robust second half of the financial year.”

The cost of fuel has not just affected Emirates Airline. British Airways and Ryanair have also posted half-year profit losses, and both have attributed the deficit to the high cost of fuel.