The Emirates Group has reported a 64 percent year-on-year drop in net profit to US$364 million for the first half of its financial year ending 30 September 2016. Group revenue rose one per cent in the period to US$12.7 billion with Emirates Airline contributing US$11.4 billion, down one per cent.

Chairman Sheikh Ahmed bin Saeed Al Maktoum said the result reflected increased competition, a strong US dollar against other currencies, and sustained economic and political uncertainty in many parts of the world.

“The bleak global economic outlook appears to be the new norm, with no immediate resolution in sight,” he noted.

Emirates SkyCargo carried 1.3 million tonnes during the period – unchanged from the same period last year as capacity rose 9.0 per cent. Dnata increased its cargo handling 28 per cent to 1.2 million tonnes.

In a bid to reduce operating costs that rose 5.0 per cent during the period, the airline has continued to take delivery of new aircraft and retire older units. Over the past six months, it has put eight more A380s into service for a total of 75 and added eight more B777s to a fleet that is now the largest in the world at 160 aircraft. At the same time, it has retired the last of 18 A330s and five A340s – resulting in an airline fleet with an average age of 5.2 years.