How is EK so profitable?

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Jul 28, 2010 | 2:48 am

#16

bearbrick

Join Date: Feb 2006

Posts: 1,368

emirates is a well managed airline . period
its not the best service wise and has shortcomings here and there but i must say THANK GOODNESS for them that i can fly here and there from asia to europe and VV in relative comforrt and a good price

compared to the RESCUED SWISS .eg.....emirates is more generous and less uptight and with much better connections albeit via dubai

way ahead of AF and KL and LH imo

for me EK is an airline of choice and i suspect for many people too - meaning people dont mind paying to fly EK ...demand gives it a good basis for profitability what more being so well managed ...

Jul 28, 2010 | 3:33 am

#17

Phil the Flyer

Join Date: Dec 2004

Location: Manila, Philippines (MNL)

Programs: BAEC Gold [>20k Lifetime TPs] | Hilton Honors Lifetime Diamond [as is Mrs PtF] | Various Others

Posts: 6,156

Quote:

Originally Posted by DXBPlat

Fares out of Dubai are ridiculously high (often double what it would be to come the other way from the destination)

I've given up even looking at EK fares ex-CAI - they're even more expensive than SQ!

Just taking one example: a CAI-HKG-CAI Business Class return for one week in mid-October 2010 is pricing out at US$2,750 (QR) / US$3,100 (EY) / US$3,200 (SQ) / US$4,500 (EK). If EK can fill aircraft at those prices no wonder they're profitable!

Five years ago, as a family of four, we flew an ex-CAI EK/CO Business Class RTW - they were extremely competitive price-wise back then. However in the intervening period EK's fares have risen exponentially.

However every cloud has a silver lining - I've discovered EY (and will shortly try QR) - a much better option than EK in my opinion anyway.

Jul 29, 2010 | 4:19 am

#18

Aspirapolvere

Join Date: Apr 2001

Location: Brussels, EU

Posts: 279

Of course, given all the years of losses brought forward, US carriers also do not pay taxes on the (rare) occasions where they manage a profit.

Quote:

Originally Posted by Down_the_back

The lack of tax on profits is another consideration.

Jul 29, 2010 | 5:02 am

#19

chunk73

Join Date: May 2006

Location: Ecosse

Programs: Flying Blue Platinum for Life, BMI Gold, EK Skywards Gold, BA Gold, IC Hotels Platinum Ambassador

Posts: 704

Quote:

Originally Posted by Phil the Flyer

Just taking one example: a CAI-HKG-CAI Business Class return for one week in mid-October 2010 is pricing out at US$2,750 (QR) / US$3,100 (EY) / US$3,200 (SQ) / US$4,500 (EK). If EK can fill aircraft at those prices no wonder they're profitable!

I guess they charge they because they can. Remember there are a lot of flights into DXB to feed that HKG leg from all over Europe and Africa. That applies less so to all the other carriers you mention.

Jul 29, 2010 | 9:22 am

#20

DYKWIA

Ambassador: Emirates Airlines

Join Date: Sep 2004

Location: Manchester, UK

Posts: 19,797

Quote:

Originally Posted by Phil the Flyer

Five years ago, as a family of four, we flew an ex-CAI EK/CO Business Class RTW - they were extremely competitive price-wise back then. However in the intervening period EK's fares have risen exponentially.

I did an F class ex-CAI to New Zealand in 2006. Cost about £2200. Probably triple that now