EMIRATES Airline announced last month that net profit for the group fell 72 per cent in 2008-2009 from the previous financial year as the global downturn hit the industry.
The airline and its affiliated businesses posted a profit of Dh1.49 billion ($406 million) for the year ended March 31, down from a record profit of Dh5.3 billion in the previous fiscal year.
The figures include profit for the passenger airline as well as cargo services, tour operations and other related travel businesses.
The group revenues grew 10.4 per cent to Dh46.3 billion, an airline statement said.
The group also retained a healthy cash balance of Dh8.7 billion ($2.4 billion) compared with Dh14 billion ($3.8 billion) the previous year.
Sheikh Ahmed bin Saeed Al-Maktoum, chairman and chief executive, Emirates Airline and Group said, “We have returned our 21st consecutive year of net profit, and although it is a 72 per cent decrease on the previous year’s all time record profit, under the circumstances this is a satisfactory result.”
The past year saw the first six months posting record fuel prices with oil rising to $147 a barrel, and then a decrease in demand from the weakened global economy was followed by declining yields with the strengthening US dollar against major currencies, which all contributed to lower profitability and lower net margin for the Group at 3.3 per cent, compared to 13.2 per cent in the previous year, he said.
Fuel costs remained the top expenditure for the fifth year running, accounting for an unprecedented 36.2 per cent of airline operating costs compared with 32.9 per cent the previous year.
Sheikh Ahmed said, “No one could have predicted the scale of the worldwide recession which is now impacting every country on earth.”
“Our development plans remain unchanged. We have weathered the last 12 months with satisfactory growth, maintained the quality of our award-winning service, and maintained staff numbers in the face of an unsettled future. We will continue to forge ahead to build the airline, Dnata and the many subsidiary companies that are part of the Emirates Group,” he said.
Sheikh Ahmed also reinforced the airline’s plans to continue taking delivery of 18 new aircraft in the coming year.
Emirates airline’s revenues totalled Dh44.2 billion ($12 billion), an increase of 9.9 per cent from Dh40.2 billion ($10.95 billion) the previous year. Airline profits of Dh982 million ($268 million) marked an 80.4 per cent decrease over 2007-08’s record profits of Dh5.0 billion ($1.37 billion).
