Emirates’ Profit Plunges 82% After Trump’s Laptop Ban on Middle Eastern Flights

Amid President Donald Trump’s laptop ban on Middle Eastern flights, Emirates Airlines saw an annual profit plunge of 82 percent in their 2016-2017 fiscal year. The airline reported it was their lowest profit margin in five years, generating $340 million USD up until March 31st.
Just to put it into perspective, Emirates had racked up $1.93 billion USD in their previous fiscal year. Their 2016-2017 revenue marks their lowest since 2012-2013 when they earned $621 million USD.”The New Year ushered in a new president in the United States, and a new administration, which in its first three months issued a raft of new measures relating to entry requirements, enhanced security vetting procedures, and restrictions on personal electronic devices in aircraft cabins,” said the CEO of Emirates Group and Airline, Sheikh Ahmed bin Saeed Al Maktoum.

When the Trump administration introduced the laptop ban, restricting all electronic device use on flights from the Middle East except cell phones, Emirates cut five U.S.-bound flight routes. The ban placed on ten Middle Eastern Airports included Dubai International, Emirates’ main airport.

Emirates has since then reduced its daily Orlando and Fort Lauderdale flights to just five times per week. They also had to cut their Boston and Seattle flights from twice daily to once a day.

This trouble comes soon after the Dubai-based airline recently increased its workforce by 11 percent to over 105,000 employees. They also bought 35 new planes, new facilities, and new equipment, investing $3.7 billion USD.

Emirates has encountered plenty of issues when it comes to getting investors, as well. The Dubai carrier is still being affected by oil prices declining, and the U.S. dollar rising.

Due to having these money troubles, the airline reported it would not be paying the Investment Corporation of Dubai its dividends. This corporation is the state investment group that owns Emirates Airlines and last year it received $707 million USD.

Despite the current business climate, Emirates is planning an $11 million USD renovation of its Dubai lounges in 2017. They also plan on a 15 location expansion across the United States by 2018.

“We remain optimistic for the future of our industry, although we expect the year ahead to remain challenging with hyper competition squeezing airline yields, and volatility in many markets impacting travel flows and demand,” said H.H. Sheikh Maktoum, Prime Minister of United Arab Emirates.

Recent reports of the Trump administration extending this electronic device to European flights have spread like wildfire. This would force other airlines like Delta and United suffer the same fate as Emirates.

About the Author

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Svilen Petrov
My name is Svilen Petrov and I’m founder and chief editor at Wings Journal. Wings Journal is an independent media, which provides you daily with the most interesting and actual news for air companies, airports, and aviation technologies.

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