Emirates Group announces 2016-17 results

tion as the world’s largest international carrier. The airline increased capacity during the year by 4.1 billion Available Tonne Kilometres (ATKMs) or 7% over 2015-16.

Emirates received 35 new aircraft, its highest number during a financial year, comprising 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. This fleet roll-over involving 62 aircraft was the largest programme it has ever managed in a year, and it brought Emirates’ average fleet age down significantly to 63 months, compared with 74 months last year, and the industry average of 140 months.

It underscores Emirates’ strategy to operate a young and modern fleet which is better for the environment, better for operations, and better for customers. The airline remains the world’s largest operator of the Boeing 777 and A380 – both aircraft being among the most modern and efficient wide-bodied jets in the sky today.

During the year, Emirates launched six new passenger destinations: Fort Lauderdale, Hanoi, Newark, Yangon, Yinchuan and Zhengzhou; and one new additional freighter destination: Phnom Penh. It also added services and capacity to nine cities on its existing route network across Africa, Asia, Europe, the Middle East and North America, offering customers even greater choice and connectivity.

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 85.1bn ($23.2bn). The relentless rise of the US dollar against currencies in most of Emirates’ key markets had an AED 2.1bn ($572m) impact on airline revenue, and to the airline’s bottom line. It was the second largest measured in a financial year after last year.

Total operating costs increased by 8% over the 2015-16 financial year. The average price of jet fuel fell slightly during the financial year. But due to an 8% higher uplift in line with capacity increase, the airline’s fuel bill increased by 6% over last year to AED 21.0bn ($5.7bn). Fuel is now 25% of operating costs, compared to 26% in 2015-16, but it remained the biggest cost component for the airline.

The airline successfully managed increased competitive pressure across all markets to remain profitable with AED 1.3bn ($340m), a decrease of 82% over last year’s record results, and a profit margin of 1.5%.

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%. The decline in passenger seat factor compared to last year’s 76.5%, is relative to the strong 10% increase in seat capacity by Available Seat Kilometres, and also in part due to lingering economic uncertainty and strong competition in many markets.

Under pressure from the weakening of all major currencies against the USD, passenger yield dropped to 24.7 fils (6.7 US cents) per Revenue Passenger Kilometre (RPKM).

To fund its fleet growth in a year of record aircraft deliveries, Emirates raised AED 29.1bn ($7.9bn), using a variety of financing structures.

Emirates closed the financial year with a healthy AED 15.7bn ($4.3bn) of cash assets.