Emirates reports strong annual profits

Emirates reports strong annual profits

The Emirates Group has today announced it 25th consecutive year of profit and company-wide growth ending the year in a strong position despite continuing high fuel prices and a weak global economic environment.

The financial year also ended with some very positive newly reached capacity milestones throughout the business. 

Released today in the group’s 2012-13 annual report, the company posted an AED 3.1 billion net profit, up 34 per cent from last year. 

Even with external challenges, the Group’s revenue reached AED 77.5 billion an increase of 17 per cent over last year’s results. 

The group’s cash balance grew by 53 per cent reaching a solid AED 27.0 billion.

“Achieving our 25th consecutive year of profit in a financial year with our largest ever increase in capacity across the network is an achievement that speaks to the strength of our brands and our leadership,” said His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman, Emirates Group.

“Throughout the 2012-13 financial year the Group has collectively invested over AED 13.8 billion in new aircraft, products, services and handling facilities as well as the newly opened JW Marriott Marquis Hotel in Dubai.

“This investment has resulted in an increased customer base and a rise in global brand awareness. Every dirham that we earn is strategically placed back into our business and it is this tenacious approach that has allowed the Group to maintain such strong and consistent profitability under challenging circumstances.” 

Despite a difficult operating environment, the group continued to invest in and expand on its employee base, increasing its overall staff count by 12 per cent to 68,000.

Emirates continued with its growth plan and during the financial year saw the largest increase in capacity in the airline’s history receiving a staggering 34 new aircraft, the highest in any single year and an unprecedented achievement.

These aircraft were funded by raising more than US$ 7.8 billion, also a first, through a variety of financing structures.  Overall capacity measured in Available Tonne Kilometres increased by 5.5 billion tonne-kilometres.

Other significant capacity increases include launching ten new destinations across six continents, shipping more than two million tonnes of cargo for the first time and carrying an additional 5.4 million passengers over last year, the highest increase in a financial year.

In the 2012-13 financial year Emirates’ fuel bill increased by 15 per cent over last year to reach AED 27.9 billion.

With total operating costs increasing by 16 per cent compared to a revenue increase of 17 per cent over last year.