Emirates is known for it’s luxe service and being a front-runner in the airline carrier world. However, in November of last year when Emirates announced a 75% drop in net profit…it was clear that not all was going swimmingly.
With the Chairman, His Highness Sheikh Ahmed bin Saeed Al Maktoum, stating that performance is being strongly impacted by the strength of the US dollar, increasing competition, and the political and economic uncertainty of many parts of the world all adding to people travelling less. Read more here.
From this Emirates have had to bring in a slew of changes to try and improve its financial state. They’ve looked at streamlining the workforce where possible and also adding in additional fees which can allow you to pay for advanced seating in economy. It has also made their business class and first class lounges accessible to passengers in any cabin for a fee of $100-200.
However, it doesn’t appear to be stopping there – to account for the huge losses, Emirates are looking at other revenue streams and cost cutting measures to get them back on the top of their game. They’re looking into bringing in premium meals and beverages that they’ll charge for, as well as offering chauffeur service for economy passengers, and even thinking of offering the use of the first class on board shower to business class passengers at a fee.
Opening up premium services to different passenger classes is a smart way for Emirates to potentially gain back some of their margin – as many frequent flyers may be more tempted to buy business class fares if they know for a price they can also get some of the perks of first class.
It is clear that the economy of travelling is becoming tougher and tougher for premium air carriers, with many people opting for cheap and cheerful flights. To be able to stay on top, it could well be that in the future we will see a lot of airlines starting to charge for extra or premium services. Things which used to be reserved for elite travellers, may now be accessible to all.
Would you pay extra to get a nice warm shower in the first class cabin on a long-haul flight? We think as a roadwarrior, it could be pretty tempting…especially when going from tarmac to board room!