15:16 | 17/05/2019 Companies
(VEN) - Released in its 2018-19 Annual Report, the Emirates Group posted a profit of 2.3 billion AED (631 million USD) for the financial year ended 31 March 2019. The Group’s revenue reached 109.3 billion AED (29.8 billion USD), an increase of 7% over last year’s results.
The Group’s cash balance was 22.2 billion AED (6.0 billion USD), down 13% from last year mainly due to large investments into the business, including significant acquisitions and payment of last year’s 2 billion AED (545 million USD) dividend.
In 2018-19, the Group collectively invested 14.6 billion AED (3.9 billion USD) in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives, a significant increase over last year’s investment spend of 9.0 billion AED (2.5 billion USD). In February, Emirates announced a commitment for 40 A330-900s and 30 A350-900s worth 21.4 billion USD at list prices in an agreement signed with Airbus, to be delivered from 2021 and 2024 respectively. The airline will also receive 14 more A380 deliveries from 2019 until the end of 2021, taking its total A380 order book to 123 units.
Emirates’ total passenger and cargo capacity crossed the 63 billion mark, to 63.3 billion ATKMs at the end of 2018-19, cementing its position as the world’s largest international carrier. The airline moderately increased capacity during the year over 2017-18 by 3%, with a focus on yield improvement. Emirates received 13 new aircraft during the financial year, comprising of seven A380s and six Boeing 777-300ERs, including the last 777-300ER on its order book. The next 777 delivery is planned for 2020, when Emirates receives its first 777X aircraft. During 2018-19, Emirates phased out 11 older aircraft, bringing its total fleet count to 270 at the end of March. This fleet roll-over involving 24 aircraft was again one of the largest managed in a year, keeping Emirates’ average fleet age at a youthful 6.1 years. It reinforces Emirates’ strategy to operate a young and modern fleet, and live up to its “Fly Better” brand promise as modern aircraft are better for the environment, better for operations, and better for customers.
During the year, Emirates launched three new passenger destinations: London Stansted (UK), Santiago (Chile) and Edinburgh (Scotland), and reinstated services to Sabiha Gokcen (Turkey). It also added flight capacity to 14 existing destinations and upgraded capacity to six cities, offering customers more choice of flight timings and onward connections.
Emirates SkyCargo continued to deliver a strong performance in a highly competitive market with dampening demand, contributing to 14% of the airline’s total transport revenue. In an airfreight market facing unrelenting downward pressure on yields and slowing demand, Emirates’ cargo division reported a revenue of 13.1 billion AED (3.6 billion USD), an increase of 5% over last year, while tonnage carried slightly increased by 1% to reach 2.7 million tonnes.