Emirates posts new record profits

The Emirates Group 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 per cent to $1.45 billion for the financial year ended March 31, 2008, on revenues of $11.2 billion compared to the previous year's $8.5 billion.

The Group's net margin improved to 13.2 per cent from 11.4 per cent in the previous year.

The Group also retained a cash balance of $3.8 billion, compared with $3.5 billion the previous year.

Emirates will pay a dividend of $272.5 million to its owner, the government of Dubai. In 2007-08, the Group estimates a direct contribution of $6 billion and another $6.8 billion in indirect contribution to the UAE economy.

Sheikh Ahmed bin Saeed Al-Maktoum, chairman and chief executive, Emirates Airline and Group 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 fourth 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.

Emirates Airline's revenues totalled $10.8 billion, an increase of 32.3 per cent over the previous year's $8.1 billion. Profits - $1.37 billion - marked a 62.1 per cent increase over 2006-07's record profits of $844 million.

In 2007-08, the airline's fleet expanded with 11 new Boeing 777s delivered and at the end of the financial year the fleet consisted of 114 aircraft, including 10 freighters.

Passenger seat factor rose to 79.8 per cent from 76.2 per cent the previous year.

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.

The Destination & Leisure Management division reached sales of $382 million, bettering its 2006-07 performance by 22 per cent. Arabian Adventures and Emirates Holidays cared for 397,000 tourists, an eight per cent increase.

As of March 31, the Group employed 35,286 staff, representing 145 different nationalities. During the year, the Group hired more than 7,000 people including some 2,000 cabin crew and 400 new flight deck crew.

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