FRANKFURT, Germany — The CEO of Emirates airline announced Thursday that his company has successfully protected itself against rising aviation fuel costs through the end of the decade, revealing this strategy as the Dubai-based carrier posted its highest-ever annual earnings.
Speaking alongside the release of financial results, Chairman and Chief Executive Sheikh Ahmed bin Saeed Al Maktoum explained that the airline has locked in both pricing and supply arrangements with fuel providers. “From a fuel perspective, Emirates is well-hedged until 2028-29; and we have worked with our suppliers to secure the volumes required to support our current operations and our scaling up to predisruption levels,” Al Maktoum stated.
The aviation industry has been grappling with elevated fuel expenses and potential supply disruptions stemming from Iran’s interference with shipping through the Strait of Hormuz, a critical waterway that typically handles one-fifth of global oil transport. These pressures have forced several European carriers, including Air France KLM, SAS and Lufthansa, to eliminate routes from their summer flight schedules.
The protective strategy involves using financial tools like forward contracts to guarantee future fuel prices and delivery amounts.
Emirates Group’s financial performance for the year ending March 31 showed pre-tax earnings of 24.4 billion dirham ($6.6 billion), representing a 7% increase over the prior year. Total revenue climbed 3% to reach 150.5 billion dirham ($41.0 billion) compared to the previous fiscal period.
