Emirates air sees $1.6 billion fuel-cost increase

Emirates Airline will take a $1.6 billion hit from higher fuel costs in its latest financial year after absorbing all the increase. Tim Clark, president of the world's largest international carrier, said Friday that it had recently pushed through some "hefty" fuel charges to mitigate the impact. Mr. Clark said in an interview that the carrier is cutting costs and using less fuel-efficient planes on shorter routes. Parent Emirates Group reported a 51% rise in net profit to AED5.46 billion in its last financial year to Mar. 31, 2011 Mr. Clark, who was in Seattle for the launch of the carrier's sixth U.S. route from its Dubai base, said an announcement on another route was "imminent." He didn't disclose the destination, though Washington, D.C., is seen as the most likely candidate. Abu Dhabi-based rival Etihad this week announced plans to fly to the U.S. capital next year. The airline added flights to Dallas and Seattle this year and flies to New York, Los Angeles and San Francisco. Mr. Clark, who also attended an event to mark the delivery to Emirates of the 1,000th Boeing Co. 777, said the plane maker was "nearly there" in developing a revamped version of the aircraft. Emirates now has 102 of the twin-aisle planes and 93 on order, making it the world's largest operator and a key decision maker in the planned upgrade. A senior Boeing executive said at the event that the company would be ready to seek board approval for the planned 777-X toward the end of the year. Jim Albaugh, chief executive of the Boeing Commercial Airplanes unit, said the 777-X would be ready by the end of the decade if it receives the go-ahead. Boeing was working on the design and production to support the planned plane and is upgrading its 737 with new engines and other fuel-saving measures. The 777-X may have wings made of composites—like the new 787—to save weight. Mr. Albaugh declined to comment on whether Boeing might stretch the 777 to seat more passengers. But Mr. Albaugh said the aim was to have a 15% gap in seating capacity between its different aircraft models.