Emirates Airlines targets US as source of revenue

03 Dec 2014

(MENAFN) Dubai-based carrier Emirates is scheduled to substantially increase its US capacity as it proceed with its plans to make the country its third biggest source of revenue, Emirates 24/7 reported.

Emirate’s plan to increase its US capacity has so far resulted in the carrier launching services to Boston and Chicago, as well as introducing A380 to Dallas, with plans to do the same to its services to Huston and San Francisco as well in December and launch a new service to Chicago as well.

The carrier, which registered an increase by 8 percent in its net profit to reach USD514 million during the third quarter of this year, said that its revenue from the Americas, including Canada and Latin America, has grown from 8.7 per cent of all revenue in 2008 to 11.4 per cent in 2013.

Emirates’ third largest source of revenue is currently the Middle East region, with 11.3 percent, followed by the Indian subcontinent close behind with 11.2 percent of its revenue, while its US revenue contributes by 7 percent and Canada/Latin America with 4.5 percent of the carrier’s revenue.

“If we assume Emirates will broadly continue historical trends, it will need to increase US capacity by 50-100 per cent to make the US its third largest revenue source. This assumes no changes in the current regional breakdowns except for the splitting up of the current Americas category into the US and Canada/Latin America,” Australian-headquartered think-tank Centre for Asia Pacific Aviation (Capa) said.