Emirates records record profit
The Emirates Group today reported its 20th consecutive year of net profit, notching a new profit record despite soaring oil prices and challenging business conditions in the second half of its 2007-08 fiscal year. Group net profits increased 54.1...
The Emirates Group today reported its 20th consecutive year of net profit, notching a new profit record despite soaring oil prices and challenging business conditions in the second half of its 2007-08 fiscal year.
Group net profits increased 54.1 percent to AED 5.3 billion (US $1.45 billion) for the financial year ended 31st March 2008, on revenues of AED 41.2 billion ($11.2 billion) compared to the previous year’s AED 31.1 billion ($8.5 billion). The Group net margin improved to 13.2 percent from 11.4 percent in the previous year.
The Group also retained a robust cash balance of AED 14.0 billion ($3.8 billion), compared with AED 12.9 billion ($3.5 billion) the previous year. Emirates will pay a dividend of AED 1 billion ($272.5 million) to its owner, the Government of Dubai. In 2007-08, the Group estimates a direct contribution of AED 22 billion ($6 billion), and another AED 25 billion ($6.8 billion) in indirect contribution to the UAE economy.
The 2007-08 Annual Report of the Emirates Group – comprising Emirates Airline, Dnata and subsidiary companies – was released in Dubai today at a news conference hosted by Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group.
Sheikh Ahmed said: “It was another record year for the Group in spite of a challenging business climate, particularly in the second six months where the soaring cost of jet fuel made a big dent, although the impact was partly offset by other operating gains.”
Fuel costs remained the top expenditure for the 4th year running, accounting for 30.6 per cent of total operating costs compared with 29.1 per cent the previous year and 27.2 per cent the year before.
Sheikh Ahmed highlighted some major milestones for the Group. These included the move of most of the company’s Dubai-based staff to the new Emirates Group Headquarters; the launch of 11 new passenger and freighter destinations across the globe including Emirates’ first South American destination; and the massive 2007 Dubai Air Show aircraft order which has been described as the largest in civil aviation history worth US $34.9 billion at list prices.
He said: “As we plan for the next decade, our biggest challenges will be to find more pilots, engineers, cabin crew and skilled staff across our various business units. Fortunately, Emirates has thus far been a strong employer brand, with more than three million unique visitors browsing job opportunities on our online recruitment website last year, from which we received over 288,000 applications for positions within the Group. Being based in Dubai also has its advantages as the city itself is already preparing to welcome 15 million visitors by 2010 and there is massive investment in infrastructure to serve and attract the increasing number of expatriates.”
In 2007-08, the airline’s fleet expanded with 11 new Boeing 777s delivered, including Emirates’ first 777-200LR passenger aircraft. At the end of the financial year Emirates’ fleet reached 114 aircraft, including 10 freighters. Passenger seat factor increased to 79.8 per cent from 76.2 per cent the previous year.
The airline launched passenger services to seven new destinations - Newcastle, Venice, Sao Paulo, Ahmedabad, Toronto, Houston and Cape Town - and strengthened its existing network by adding services onto existing routes most notably to high-demand cities in China, India, Middle East and Africa.
Emirates SkyCargo carried 1.3 million tonnes of cargo, an improvement of 10.9 per cent over the previous year’s 1.2 million tonnes. Cargo revenue contributed 19 per cent to the airline’s total transport revenue, yet again one of the highest contributions of any airline in the world with a similar fleet.