The Emirates Group has declared a 74 per cent increase in net profits to Dhs1.05 billion ($285.7 million) for the financial year 2002/3, ended on 31st March 2003, driven by the growing confidence ofÊ its customers in the airline and travel-related group of companies.
Emirates Airline’s operations alone achieved a staggering 94 per cent increase in profits, from Dhs468.2 million ($127.6m) to Dhs906.7 million ($247.1m).
The average passenger seat factor rose to 76. 6 per cent, breaking all previous records, and cargo represented 19.6 of the airline’s revenue
Total Group revenue increased by 31 per cent to Dhs10.2 billion ($2.8b) in the year ending 31st March 2003, compared with Dhs7.8 billion ($2.1b) in the previous year.Ê Dnata returned a net income of Dhs141.7 million ($38.6m), up from Dhs134.8 million ($36.7m) for last year.
The cash balance for the Group stood at Dhs4.8 billion ($1.3b) at the year end, compared to Dh3.4 billion ($0.9b) at the end of the previous year.
The Report and Accounts of the Emirates Group, which comprises Emirates Airline and Dnata, were disclosed by Emirates’ Chairman, His Highness Sheikh Ahmed bin Saeed Al-Maktoum, at a press conference in its Dubai hub today (Wednesday 30th April 2003).
In his Review, contained in the Report, Sheikh Ahmed said: “As I travel around our network, journalists always ask the same question - what is the secret?Ê I am convinced the answer is our passion for quality, which surfaces throughout the Group wherever we do business.”
He added: “But I must point out that this success does not come automatically, or by chance, but is the consequence of real teamwork by our experienced and professional management and staff who have the ability to combine hard-nosed, cost-effective measures with a people-to-people personal touch.”
The growth of Emirates goes hand-in-hand with the growth of Dubai. The Group’s passion for quality is seen also in its active promotion of its home base as the 21st century’s most exciting city for commerce and tourism, with a difference.
Sheikh Ahmed paid tribute to Dubai’s visionary government which confidently plans and builds for the future: “At the airport, too, the government is making a crucial, multi-million dollar investment in a new, revolutionary expansion of the already futuristic complex which will increase the capacity to 60 million passengers a year by 2012 - and in a mega cargo centre capable of handling one million tonnes of freight, providing Emirates with an exclusive terminal from 2007.”
Pointing out how the Emirates Group does its part, he said that in addition to the benefit to the community of air services and long-term, unsubsidised profitability, the Emirates Group contributes significantly to the Dubai Gross Domestic Product.
“In the financial year under review, the contribution of the Group to the Dubai economy was Dhs4.0 billion ($1.1b) in direct expenditure, plus a conservative estimate of an additional Dhs6.1 billion ($1.65b) in related expenditure by third partiesÊ - a total of Dhs10.1 billion ($2.75bn),” he added.
The last year was a difficult one for the aviation industry which suffered global losses of $13 billion.Ê Emirates, like other international airlines, had to face global economic and political problems, but its fast reaction to these challenges across the network helped minimise their effects on operations.
Sheikh Ahmed commented: “We are, indeed, fortunate to be in a part of the world where the economy is booming, for when we compare our results with those of the world aviation industry in general they seem almost surreal.”
Sheikh Ahmed underlined the fact that Emirates does not receive any subsidies whatsoever from the Dubai government nor any protection from competition.