Dubai-based Emirates Group’s revenue for the first six months of its fiscal year that ends March 2017 increased only marginally by 1 per cent to AED46.5bn ($12.7bn) compared with the same period last year.

Its net profit during the same period, however, declined by 64 per cent ­­to AED1.3bn ($364m).

The group attributed the massive decline in net profit to the “double impact of a strong US dollar and a challenging operating environment for the airline and travel business”.

The group’s cash position on 30 September was at AED14.9bn, compared with AED23.5bn as of 31 March 2016, the company said in a statement.

The dramatic drop in the cash position is due to ongoing investments mainly into new aircraft, airline-related infrastructure projects, business acquisitions, and the repayments of bonds totalling AED4.1bn, loans and lease liabilities.

“Our performance for the first half of the 2016-17 financial year continues to be affected by the strong US dollar against other major currencies,” Sheikh Ahmed bin Saeed al-Maktoum, chairman and CEO of Emirates Airline and Group, said. “Increased competition, as well as the sustained economic and political uncertainty in many parts of the world has added downward pressure on prices as well as dampened travel demand.”

Emirates received 16 wide-body aircraft – eight Airbus A380s and eight Boeing 777 planes – with 20 more new aircraft scheduled to be delivered before the end of the financial year. Emirates has a total of 234 aircraft with an estimated total value of $112bn on order and pending delivery.