Emirates Group overcomes challenging market to boost profits

Emirates Group overcomes challenging market to boost profits

The Emirates Group has announced its half-yearly results which show steady performance and growth, despite a challenging business environment marked by ongoing health pandemic concerns, regional conflicts, and weakening global markets.

The Emirates Group revenues reached US$ 12.9 billion for the first six months of its 2014-15 fiscal year, up 12 per cent from US$ 11.5 billion during the same period last year.

Net profit for the group rose to US$ 607 million, an increase of one per cent over the last year’s results.

The group’s cash position on September 30th 2014 was US$ 4.4 billion, compared to US$ 5.2 billion as at March 31st 2014.

This is due to ongoing investments mainly into new aircraft and other airline related infrastructure projects.

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“As the biggest operator at Dubai International, we also took the biggest hit to our bottom line from the 80-day runway upgrading works.

“However, we had anticipated it and made meticulous plans to minimise impact operationally and commercially for both Emirates and dnata.

“The success of these plans can be seen in our overall growth during this six-month period in spite of the challenge,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group.

He added: “It is those external threats that we cannot anticipate or directly manage, such as the global economic malaise, the Ebola outbreak, currency fluctuations, and regional conflicts, that could negate our efforts and plans.

“These issues appear to be piling up, impacting commercial aviation and travel, but show no signs of speedy resolution. 

“Therefore it is critical that we stay agile as we grow.

“The ability to adapt and act quickly will determine our continued success.

“Moving forward, we will keep a watchful eye on these challenges, but continue to focus on our long-term goals and invest in the infrastructure of both Emirates and dnata.”

During the first six months of the fiscal year Emirates received 13 wide-body aircraft – six A380s, seven Boeing 777s, with 11 more new aircraft scheduled to be delivered before the end of the financial year in March.

Emirates also expanded its global route network by launching services to four new destinations – Abuja, Chicago, Oslo, and Brussels, exponentially increasing the number of city-pair flight options that it provides to customers across the globe with each new city served.

Operating the world’s largest fleet of A380s and the largest fleet of Boeing 777s, Emirates continues to provide ever better connections for its customers across the globe with just one stop in Dubai.

Against the backdrop of unprecedented external challenges which led the airline to suspend the highest number of routes in a year and temporarily ground part of its fleet due to the runway closure, and despite 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 2014-15 fiscal year, Emirates net profit is US$ 514 million, up eight per cent from the same period last year.

dnata continued to grow its international business footprint, investing in infrastructure and operations which now span 38 countries.

dnata’s revenue including other operating income is US$ 1.2 billion, compared to US$ 1 billion last year.

Overall profit for dnata dropped by 26 per cent US$ 92 million.

This was due to a number of factors including the impact of the runway enhancement works at Dubai International Airport which saw dnata handling fewer aircraft during this period, as well as costs incurred to set up and launch handling operations at Dubai World Central.