Emirates group announces record profits

14:07 | 12/05/2016 Global Economy

(VEN) - May 12th , The Emirates Group announced its 28th consecutive year of profit and steady business expansion, ending the year with record profits, and in a strong position despite the global and operational challenges during this period.

Emirates group announces record profits

Emirates SkyCargo

During the 2015-16 financial year, both Emirates and dnata achieved new capacity and profit milestones, as the Group continued to expand its global footprint, and strengthen its business through strategic investments.

Released recently in its 2015-16 Annual Report, the Emirates Group posted an AED 8.2 billion (US$ 2.2 billion) profit for the financial year ending 31 March 2016, up 50% from last year. The Group’s revenue reached AED 93 billion (US$ 25.3 billion), a decrease of 3% over last year’s results, and the Group’s cash balance increased strongly to AED 23.5 billion (US$ 6.4 billion).

His Highness (H.H.) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: “Emirates and dnata delivered record profits, solid business results, and continued to grow throughout 2015-16. Against an unfavourable currency situation which eroded our revenues and profits, an uncertain global economic environment dogged by weak consumer and investor sentiment, as well as ongoing socio-political instability in many regions around the world, the Group’s performance is testament to the success of our business model and strategies.”

The Group’s employee base across its more than 80 subsidiaries and companies increased by 13% to over 95,000-strong representing over 160 different nationalities.

“Looking at the year ahead, we expect that the low oil prices will continue to be a double-edged sword – a boon for our operating costs, but a bane for global business and consumer confidence. The strong US dollar against major currencies will remain a challenge, as will the looming threat of protectionism in some countries. However, we enter the new financial year with confidence, backed by a robust balance sheet, solid track record, perse global portfolio, and international talent pool. We will continue to evolve and grow our business profitably, and work even harder to meet and exceed our customers’ expectations,” said Sheikh Ahmed.

In line with the overall profit, the Group declared a pidend of AED 2.5 billion (US$ 681 million) to the Investment Corporation of Dubai.

Emirates’ total passenger and cargo capacity crossed the 56 billion mark, to 56.4 billion ATKMs at the end of 2015-16, cementing its position as the world’s largest international airline. The airline increased capacity during the year by 5.5 billion Available Tonne Kilometres (ATKMs), or 11% over 2014-15.

Emirates received 29 new aircraft, its highest number during a financial year, including 16 A380s, 12 Boeing 777-300ERs and one Boeing 777F, bringing its total fleet count to 251 at the end of March.

With the delivery of new aircraft, Emirates launched eight new passenger destinations: Bali, Bologna, Cebu, Clark, Istanbul (Sabiha Gökçen), Mashhad, Multan, Orlando; and two new additional freighter destinations: Columbus and Ciudad del Este. It also added services and capacity to 34 cities on its existing route network across Africa, Asia, Europe, the Middle East, and North America, offering customers even greater choice and connectivity.

For 2016-2017, Emirates has announced new routes to Yinchuan and Zhengzhou in China, Yangon in Myanmar and Hanoi in Vietnam, aside from capacity upgrades to existing destinations.

Emirates SkyCargo continues to play an integral role in the company’s expanding operations, contributing 14% of the airline’s total transport revenue.

Emirates’ cargo pision reported a revenue of AED 11.1 billion (US$ 3.0 billion), a decline of 9% over last year, while tonnage increased by 6% to reach 2.5 million tonnes in an airfreight market that remained challenging with fast-changing demand patterns. This year, freight yield per Freight Tonne Kilometre (FTKM) decreased sharply by 16%, and was also impacted by the weakening of major currencies.

In addition to belly-hold capacity to Emirates’ new passenger destinations, Emirates SkyCargo increased freighter operations to Mexico City, and launched new freighter services to Ho Chi Minh City (Vietnam), Ahmedabad (India), Columbus (USA), Algiers (Algeria), and Ciudad Del Este (Paraguay).

During 2015-2016, Emirates SkyCargo officially inaugurated its purpose-built cargo terminal for freighter operations at Al Maktoum International airport (DWC), and received delivery of a Boeing 777F, rounding off its total freighter fleet to 15 aircraft: 13 Boeing 777Fs, and two Boeing 747-400Fs.

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