THE Emirates Group displayed robust performance in 2013 despite continued global economic pressure and high fuel prices, it has been announced.
Group revenues reached Dh42.3 billion ($11.5 billion) for the first six months of its fiscal year that ended on September 30, 2013, up 13 per cent from Dh37.5 billion ($10.2 billion) the previous year.
Net profit for the Group rose to Dh2.2 billion ($600 million) an increase of four per cent over the previous year’s results. The Group’s cash position was a Dh18.2 billion ($4.9 billion), compared to Dh27.0 billion ($7.3 billion) as at March 31, 2013. This is after a Dh1.8 billion bond repayment which matured in July 2013, a Dh367 million first instalment payment on a $1 billion Sukuk, and a Dh7 billion injection back into the business to fund new aircraft, engines, spares and other projects across the Group.
“The global business environment continues to be challenging. We have stayed agile even as we grow, and this ability to adapt and act quickly has been key to our success. Our investments in the infrastructure of both Emirates and dnata continue to pay off and while we keep a close watch on managing our immediate business targets, we never lose sight of our long-term goals, and that is why we continue to invest to build the business,” says Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group.
In the past six months, the Group continued to invest in and expand its employee base, increasing its overall staff count by 11.7 per cent to over 75,800 compared with March 31, 2013.
During the first six months of the fiscal year Emirates received 10 wide-body aircraft – six A380s, three 777s and one 777 freighter, with 15 more new aircraft scheduled to be delivered before the end of the financial year (March 31, 2014). Emirates also invested in its network by launching services to two new destinations – Haneda and Stockholm, bringing the total count of new routes launched in the past 12 months to seven including Adelaide, Lyon, Phuket, Warsaw and Algiers.
Despite the fundamental challenges of high fuel prices, a still-recovering global economy, and a strong performance of the US dollar against other major currencies impacting revenues, Emirates continues to make a profit. In the first half of the 2013-14 fiscal year, Emirates net profit is Dh1.7 billion ($475 million), up two per cent from the same period last year.
“Emirates’ half-year scorecard shows a steady demand for our products and services. Our capacity and route growth continue to match and meet passenger demand. High fuel prices, accounting for 39 per cent of our expenditures, and the unfavourable currency exchange environment continue to eat into our profits. However, we remain steadfast in our vision to be the airline of choice for international air services, and we will invest in our people and our infrastructure, and work closely with our partners to bring this to fruition,” added Sheikh Ahmed.
Emirates now flies to 138 destinations in 78 countries, up from 126 cities last year in 74 countries. The airline’s new destinations since April 1, 2013 – Haneda, Stockholm, Clark, Conakry, and Sialkot – include key cities and regional airports currently underserved by non-stop international services. Additional new routes to be added in the remaining part of the fiscal year include Kiev, Taipei and Boston.
The Emirates A380 has also celebrated five years of operations, carrying over 18 million passengers since its first flight on August 1, 2008 from Dubai to New York.
Emirates revenue, including other operating income, of Dh39.8 billion ($10.8 billion) was higher by 12 per cent compared with Dh35.4 billion ($9.6 billion) recorded last year, reflecting passenger demand and strong yield.
dnata continues its strong performance, building on the success of its investments in international business growth and infrastructure which now span 38 countries. dnata’s revenue including other operating income is Dh3.7 billion ($1 billion), 18 per cent higher compared to Dh3.2 billion ($864 million) last year. Overall profit for dnata rose strongly by 13 per cent to Dh458 million ($125 million).
Emirates now operate services to 138 destinations in 78 countries from Dubai. In 2013, Emirates launched services to Warsaw and Algiers, Haneda, Japan, Clark in the Philippines, the transatlantic Milan-New York route, Conakry, Sialkot in Pakistan and Kabul in Afghanistan.
Emirates will begin 2014 with the launch of services to Kiev, followed by Taipei and Boston on March 10.