Political unrest in the Middle East and North Africa contributed to a “tough” fiscal year for Emirates, according to president Tim Clark.
But Clark said the Dubai-based carrier, which reports its results for the second half of 2010 on May 10, still managed to stay “on course.”
The airline was affected by last year’s Icelandic volcanic eruption and severe weather conditions in Europe in December which closed airports and disrupted travel.
Clark, speaking at a travel industry event in the Gulf state, said fuel accounted for 43% of the Dubai government-owned airline’s costs.
He added that airlines will face a big challenge if oil prices hover around the $130 a barrel mark until the end of the year.
The airline, the largest customer for the Airbus A380 super jumbo, carried 15.5 million passengers in the first half of the year and its passenger load factor stood at 81.2% for the period, its highest ever for a six month reporting period, Reuters reported.
Clark said load factors in March were coming back up after being reduced by uprisings in Tunisia and Egypt.
The carrier had scaled back flights in the wake of unrest in North Africa and Bahrain. It also dropped plans for a bond to finance expansion after the upheaval made rates more expensive.
“We tested the waters earlier but pulled it off the table. Maybe we will look at it again,” Clark reportedly said. “Banks are a little more flushed with funds now. So maybe there’s an indication to lend at rates that are attractive [to us].”