UPDATE 2-Emirates H1 profit jumps 165 pct; still cautious

* Does not expect travel demand to rise for at least 1-2 yrs

* Profit at 752 mln dirhams vs 284 mln dirhams a year earlier

* H1 revs 19.8 bln dirhams, down 13.5 pct from '08 H1

* Seat load factor 77.5 pct

(Adds analyst comments, recasts)

By John Irish and Jason Benham

DUBAI, Nov 5 (Reuters) - Emirates [EMAIR.UL], the Dubai-owned carrier, bucked the downward trend in aviation earnings with a 165-percent rise in first-half profit, driven by lower costs, but remained cautious in its outlook.

"The months since the global meltdown have really tested our mettle," Emirates chairman Sheikh Ahmed bin Saeed Al-Maktoum said, warning demand was unlikely to pick up in the immediate future.

Airlines around the world have been crippled by reduced spending on travel, a drop in global trade and rising oil prices. To cut their bloated cost bases, many have grounded planes and cancelled or deferred aircraft orders.

"While some say the green shoots of economy recovery are sprouting, we expect it will take at least another year or two before demand for air transport and travel services starts picking up again," al-Maktoum said.

Industry body IATA has said it sees the world's airlines losing $11 billion this year as consumers tightened their purse strings and companies cut travel budgets.

Dubai government-owned Emirates said in a statement net profit in the first half of its financial year which ends Sept. 30 was 752 million dirhams ($204.7 million). It gave no breakdown.

The carrier said total expenditures were 15.8 percent lower than the same period last year, helped by lower fuel costs and cost containment.

"Emirates like all airlines will have benefited from the drop in fuel costs and thats why we've seen an increase in margins," said Kareen Murad, lead analyst for logistics and transportation at Shuaa Capital in Dubai.

Still, revenues fell 13.5 percent on lower passenger and cargo yields.