Emirates faces revenue hit on Dubai runway upgrades

18/04/2014 06:27 AST

ubai’s flagship carrier Emirates faces losing revenue of 1bn dirhams ($272mn) when it reduces flights to 41 destinations from Dubai International Airport during work to upgrade and refurbish the two runways, it said yesterday.

The 80-day programme of work will start on May 1 with Emirates taking the brunt of reductions in flying, as it accounts for about 50% of the traffic from the airport, the airline said in a statement.

“There will be an impact on our revenues to the tune of approximately 1bn dirhams,” said Tim Clark, the President of Emirates Airline. “We have to take the long-term view and manage the short-term pain,” Clark said, adding that the upgrade would add much-needed capacity to the airport.

The airline will ground 20 aircraft in May, 22 in June, and 22 in July, it said in the statement.

Emirates, which competes with regional carriers like Qatar Airways and Etihad Airways, reported a flat first-half profit in 2013 due to high fuel costs and currency headwinds.

Dubai International Airport, which handled 66.4mn passengers in 2013, said earlier this week that it would cut 26% of flights handled during the runway work.

However, it plans to divert some flights to the emirate’s new Al Maktoum International Airport, which opened to passenger traffic last October.


Reuters

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