Sunday, May 14, 2017

Emirates Group records US$ 670 mn profit in 2016-17

The Emirates Group has announced its 29th consecutive year of profit and steady business expansion, despite a turbulent year for aviation and travel.

The Emirates Group posted an AED 2.5 billion (US$ 670 million) profit for the financial year ending 31 March 2017, down 70% from last year’s record profit. The Group’s revenue reached US$ 25.8 billion, an increase of 2% over last year’s results, and the Group’s cash balance decreased by 19% to US$ 5.2 billion mainly due to the repayment of two bonds on maturity and ongoing high investments into its fleet and aircraft related assets.

In line with the current business climate and to support the future investment plans of the Group, no dividend payment will be made to the Investment Corporation of Dubai (ICD) for 2016-17.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: “Emirates and dnata have continued to deliver profits and grow the business, despite 2016-17 having been one of our most challenging years to date.

In 2016-17, the Group collectively invested US$ 3.7 billion in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives.

“These investments will further strengthen our resilience, even as we extend our competitive edge, and adapt our businesses to the volatile business climate and fast changing consumer expectations.”

Across its more than 80 subsidiaries and companies, the Group increased its total workforce by 11% to over 105,000-strong,  representing over 160 different nationalities. Emirates’ total passenger and cargo capacity crossed the 60 billion mark, to 60.5 billion ATKMs at the end of 2016-17, cementing its position as the world’s largest international carrier.

Emirates received 35 new aircraft, its highest number during a financial year, comprising of 19 A380s and 16 Boeing 777-300ERs. At the same time 27 older aircraft were phased out, bringing its total fleet count to 259 at the end of March.

Against significant currency devaluations against the US dollar and fare adjustments due to a highly competitive business environment, Emirates managed to keep its revenue stable at AED 85.1 billion (US$ 23.2 billion).

Total operating costs increased by 8% over the 2015-16 financial year. Overall passenger traffic growth continues to demonstrate the consumer desire to fly on Emirates’ state-of-the-art aircraft, and via efficient routings through its Dubai hub.

Emirates carried a record 56.1 million passengers (up 8%), and achieved a Passenger Seat Factor of 75.1%.To fund its fleet growth in a year of record aircraft deliveries, Emirates raised US$ 7.9 billion, using a variety of financing structures. Emirates closed the financial year with a US$ 4.3 billion of cash assets. Europe was the highest revenue contributing region with AED 23.9 billion (US$ 6.5 billion), unchanged from 2015-16.

Emirates SkyCargo continues to play an integral role in the company’s expanding operations, contributing 13% of the airline’s total transport revenue.

Emirates’ SkyCargo’s total freighter fleet remained unchanged, with 15 aircraft: 13 Boeing 777Fs, and two Boeing 747-400Fs.

Emirates’ hotels recorded revenue of US$ 201 million, an increase of 5% over last year in a highly competitive market mainly in the UAE.

Revenue from dnata’s UAE Airport Operations, including aircraft and cargo handling increased by 6% to reach US$ 823 million. Revenue from dnata’s Travel Services division has seen a slight decline of 5% to AED 3.1 billion (US$ 854 million).

 

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