Emirates Airline bond yields fall

Emirates Airline’s bond yield is falling to a record low due to a recovery in Middle East passenger traffic and appetite for higher-yielding Dubai assets. The yield on Emirates’ 5.125% dollar notes maturing in June 2016 dropped 75 basis points this year to 4.42% yesterday. Although investors consider the airline to be a great bet, Emirates’ profit for the six months ended September 30 dropped by 76% due to fuel cost increasing substantially and the airline maintaining a no-hedging strategy.