Emi­rates Group an­nounces hal­fyear per­for­mance for 2016-17

Malta Independent - - BUSINESS / CLASSIFIEDS -

The Emi­rates Group an­nounced its half-year re­sults for 2016-17. The Group held steady on rev­enue, but profit was hit by the dou­ble im­pact of a strong US dol­lar and chal­leng­ing op­er­at­ing en­vi­ron­ment for the air­line and travel busi­ness.

The Emi­rates Group rev­enue was AED 46.5 bil­lion ($12.7 bil­lion) for the first six months of its 2016-17 fi­nan­cial year, up 1% from AED 46.0 bil­lion ($12.5 bil­lion) dur­ing the same pe­riod last year.

Fol­low­ing one of its best ever half-year profit per­for­mances last year, the Group for 2016-17 re­ported a half-year net profit of AED 1.3 bil­lion ($364 mil­lion), down 64%. The Group’s cash po­si­tion on 30th Septem­ber was at AED 14.9 bil­lion ($4.1 bil­lion), com­pared to AED 23.5 bil­lion ($ 6.4 bil­lion) as at 31st March 2016. This is due to on­go­ing in­vest­ments mainly into new air­craft, air­line re­lated in­fra­struc­ture projects, busi­ness ac­qui­si­tions, and the re­pay­ments of bonds to­talling AED 4.1 bil­lion ($1.1 bil­lion), loans and lease li­a­bil­i­ties.

“Our per­for­mance for the first half of the 2016-17 fi­nan­cial year con­tin­ues to be im­pacted by the strong US dol­lar against other ma­jor cur­ren­cies. In­creased com­pe­ti­tion, as well as the sus­tained eco­nomic and po­lit­i­cal un­cer­tainty in many parts of the world has added down­ward pres­sure on prices as well as damp­ened travel de­mand,” said Sheikh Ahmed bin Saeed Al Mak­toum, Chair­man and Chief Ex­ec­u­tive, Emi­rates Air­line and Group.

He added: “The bleak global eco­nomic out­look ap­pears to be the new norm, with no im­me­di­ate res­o­lu­tion in sight. Against this backdrop, the Group has re­mained prof­itable and our solid busi­ness foun­da­tions con­tinue to stand us in good stead. In the first six months of this year, both Emi­rates and dnata con­tin­ued to grow in ca­pa­bil­ity and ca­pac­ity. Our past in­vest­ments in prod­uct and ser­vices are now pay­ing off, en­abling us to re­tain val­ued clients and at­tract new cus­tomers - re­flected in the air­line’s pas­sen­ger growth of 2.3 mil­lion. We con­tinue to make strate­gic in­vest­ments, be­cause we know we have to work even harder for ev­ery cus­tomer, and make ev­ery dol­lar spent go even fur­ther through in­no­va­tion and driv­ing ef­fi­ciency across our busi­ness.”

In the past six months, the Group con­tin­ued to de­velop and ex­pand its em­ployee base, in­creas­ing its over­all staff count to over 103,000, a 9% in­crease com­pared with 31 March 2016. This was mainly due to re­cent ac­qui­si­tions in dnata busi­nesses, and also re­quired sup­port for Emi­rates’ grow­ing fleet.

Emi­rates air­line

Emi­rates con­tin­ues to in­vest in the most ad­vanced wide-body air­craft to im­prove over­all ef­fi­ciency and pro­vide bet­ter cus­tomer ex­pe­ri­ence. Dur­ing the first six months of the fi­nan­cial year, Emi­rates re­ceived 16 wide-body air­craft – 8 Air­bus A380s, and 8 Boe­ing 777s, with 20 more new air­craft sched­uled to be de­liv­ered be­fore the end of the fi­nan­cial year. It also re­tired 19 older air­craft from its fleet with fur­ther 8 to be re­turned by 31 March 2017.

Emi­rates ex­panded its global route net­work by launch­ing pas­sen­ger ser­vices to four new des­ti­na­tions – Yinchuan, Zhengzhou, Yan­gon, and Hanoi. As of 30 Septem­ber, Emi­rates’ global net­work spanned 155 des­ti­na­tions in 82 coun­tries, with Fort Laud­erdale to come on­line on 15 December 2016.

Op­er­at­ing the world’s largest fleet of A380s and the largest fleet of Boe­ing 777s, Emi­rates con­tin­ues to pro­vide ever bet­ter con­nec­tions for its cus­tomers across the globe with just one stop in Dubai.

Over­all ca­pac­ity dur­ing the first six months of the year in­creased 9% to 30.2 bil­lion Avail­able Tonne Kilo­me­tres. Ca­pac­ity mea­sured in Avail­able Seat Kilo­me­tres, grew by 12%, whilst pas­sen­ger traf­fic car­ried mea­sured in Rev­enue Pas­sen­ger Kilo­me­tres was up 8% with av­er­age Pas­sen­ger Seat Fac­tor drop­ping to 75.3%, com­pared with last year’s 78.3%.

Emi­rates car­ried 28.0 mil­lion pas­sen­gers be­tween 1 April and 30 Septem­ber, up 9% from the same pe­riod last year. The vol­ume of cargo up­lifted re­mained sta­ble at 1.3 mil­lion tonnes, a solid per­for­mance in a chal­leng­ing air freight mar­ket.

In the first half of the 2016-17 fi­nan­cial year, Emi­rates net profit is AED 786 mil­lion ($214 mil­lion), down 75%, fol­low­ing one of the air­line’s best half-year per­for­mances dur­ing the same pe­riod last year.

Emi­rates rev­enue, in­clud­ing other op­er­at­ing in­come, of AED 41.9 bil­lion ($11.4 bil­lion) was slightly down by 1% com­pared with AED 42.3 bil­lion ($11.5 bil­lion) recorded last year. This is due to the un­favourable cur­rency en­vi­ron­ment - where the US dol­lar con­tin­ued to strengthen against most other ma­jor cur­ren­cies; and in­creased com­pe­ti­tion re­sult­ing in lower av­er­age fares. The air­line was also im­pacted by cur­rency de­val­u­a­tion and hard cur­rency short­age in some African coun­tries, as well as damp­ened travel de­mand due to the on­go­ing eco­nomic malaise and loom­ing se­cu­rity concerns across ma­jor mar­kets in its net­work.

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