Emirates, Dubai’s flagship airline, reported a 40 per cent jump in annual net profit, aided by savings from lower oil prices.

The airline, one of the world’s largest carriers of international passengers, posted a profit of 4.6 billion dirhams (1.14 billion) for the financial year to March 31, chairman and chief executive Sheikh Ahmed bin Saeed al-Maktoum told a news conference.

The latest bumper profit increase from the carrier comes after a coalition of United States’ airlines and their labour unions accused Gulf rivals of receiving more than $40 billion in unfair subsidies – charges dismissed as false by all the carriers, including Emirates.

Sheikh Ahmed said lower oil prices had saved the airline around two billion dirhams during the financial year, with fuel constituting 35 per cent of operating costs against 39 per cent in the previous 12 months.

Revenue also increased 7 per cent year on year to 88.8 billion dirhams.

These helped offset 1.7 billion dirhams of lost revenue from runway maintenance work at its Dubai International Airport hub, which lasted for 80 days starting May 1.

It also made up for the impact of the strong dollar, which cost the company 1.5 billion dirhams.

The world’s biggest customer of the Airbus A380 superjumbo said profit for the wider Emirates Group, which includes airline services arm Dnata, rose 34 per cent to 5.5 billion dirhams.

This was driven by a 10 per cent year-on-year increase in revenue to 96.5 billion dirhams.

Seat occupancy, or seat factor, averaged 79.6 per cent, Sheikh Ahmed said, up from 79.4 per cent in the prior year.

Emirates paid a dividend of 2.6 billion dirhams to Investment Corporation of Dubai, the state investment vehicle which owns the airline and stakes in a host of Dubai companies. It paid around one billion dirhams for the 2013 financial year.