Emirates Group Announces 25th Consecutive Year Of Profit


dosage geneva;”>His Highness (H.H) Sheikh Ahmed bin Saeed Al Maktoum, viagra order Chairman and Chief Executive, adiposity Emirates Airline and Group was pleased to announce that the financial year ended with some very positive newly reached capacity milestones throughout the business.

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“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,” he said.

His Highness (H.H) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group

In the Group’s 2012-2013 Annual Report which was released on Thursday, reported an AED 3.1 b ($ 845m) net profit, up 34 per cent from last year and a revenue of AED 77.5bn ($ 21.1bn) 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 27.0bn ($ 7.3bn).

“Throughout the 2012-13 financial year the Group has collectively invested over AED 13.8bn ($ 3.8bn) in new aircraft, products, services and handling facilities as well as the newly opened JW Marriott Marquis Hotel in Dubai,” said Sheikh Ahmed.

He added that 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.”

dnata’s ground handling experts at Dubai International Airport, part of a 20,000-employee strong global workforce

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. It saw the largest increase in capacity in the airline’s history receiving a staggering 34 new aircraft, launched 10 new destinations across six continents, shipping more than 2 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 27.9bn ($ 7.6bn). With total operating costs increasing by 16 per cent compared to a revenue increase of 17 per cent over last year.

“Managing volatile exchange rates, coupled with a persistently high fuel bill accounting for 40 per cent of our total expenditures, has required continued strong resolve,” added Sheikh Ahmed. “Even with these lingering challenges we continue to grow and remain profitable despite the industry norms because we continue to rely on our proven business model and understanding of the marketplace.”

dnata’s 20,000 employees in 38 countries worldwide unite around a common theme of ‘delighting customers’

Sheikh Ahmed further noted: “Staying the course, our strategy for growth has reaped high benefits this past financial year, which has been our strongest ever in relationship to capacity growth.”

“Emirates seat load factor over the last three years has been 80 per cent despite our increase in capacity by 44 per cent during the same period, showing the continued global demand for our product. In addition our capacity measured in terms of Available Tonne Kilometres (ATKMs), which includes passenger and cargo capacity, crossed the 40 billion tonne-kilometres mark, another first for Emirates,” he added.

Highlighting its sound financials and investor confidence, Emirates raised more than AED 28.6bn ($ 7.8bn) in new funding mainly to secure its on-going fleet expansion, a record amount for the airline. Emirates also issued a 10-year amortized Sukuk for $ 1bn and raised $ 750m with a 12-year amortized bond matched to the payment cycle for the aircraft. It further includes more than AED 20bn ($5.4bn) raised through finance and operating leases.

Sheikh Ahmed also affirmed:“We move into the new financial year with confidence and a clear vision of where we are headed. We understand that succeeding in this industry requires determination and we are unapologetic about our drive to be the best.”

“We strive to provide superior customer experiences and as our customers’ expectations increase so do the expectations we set for ourselves. With the help of our 68,000 strong multicultural work force we have no doubt that the year ahead will again be more profitable than the last,” he added.

Concourse A, home of the Emirates A380, at sunset with the iconic Dubai skyline in the background

Emirates revenue reached a record high of AED 73.1bn ($ 19.9bn) growing by 17 per cent when compared to the 2011-12 financial year. Although the average price of jet fuel did not increase over last year, it remains high and has impacted Emirates’ bottom line with the airline’s profit at AED 2.3bn ($ 622m) representing an increase of 52 per cent over last year’s results.

Carrying a record 39.4 million passengers, an increase of 16 per cent, Emirates logged a robust Passenger Seat Factor, at 80 per cent, remaining consistent with last year’s results. With an increase in seat capacity-Available Seat Kilometres (ASKMs) of 18 per cent the result highlights a strong consumer desire to fly on Emirates’ state-of-the-art aircraft.

Passenger yield remained steady with 30.5 fils (8.3 US cents) per Revenue Passenger Kilometre (RPKM).

Revenue generated from across Emirates’ six regions continues to be well balanced, with no region contributing more than 30 per cent of overall revenues. East Asia and Australasia remained the highest revenue contributing region with AED 20.9bn ($ 5.7bn) up 15 per cent from 2011-12. Europe, up 18 per cent to AED 20.1bn ($ 5.5bn) and the Americas up 24 per cent to AED 8.3bn ($ 2.3bn) saw the most significant growth, reflecting new destinations as well as increased frequency and capacity to these regions.

Across the rest of the globe Emirates saw strong revenue increases from West Asia and the Indian Ocean up 13 per cent to AED 8.0bn ($ 2.2bn), Gulf/Middle East up 13 per cent to AED 7.1bn ($ 1.9bn) and Africa with AED 6.7bn ($1.8bn in revenue, up 10 per cent.

Emirates premium seat factor remained strong despite the global financial uncertainty. Premium and overall seat factor for the airline’s flagship A380 aircraft outperformed the network, highlighting the continued demand for the product from passengers.

Looking forward to 2013-14, Emirates has to date announced four new routes; Haneda, Clark in the Philippines, Stockholm and Milan to New York.


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