Emi­rates Group flies to Record Prof­its

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The Emi­rates Group has marked its 23rd con­sec­u­tive year of profit with a record per­for­mance of AED 5.9 bil­lion (US$ 1.6 bil­lion) net profit, de­spite a chal­leng­ing busi­ness cli­mate.

The 2010-11 An­nual Re­port of the Group, com­pris­ing Emi­rates Air­line, Dnata and their sub­sidiary com­pa­nies – was re­leased in Dubai at a news con­fer­ence hosted by His High­ness Sheikh Ahmed bin Saeed Al Mak­toum, Chair­man and Chief Ex­ec­u­tive, Emi­rates Air­line and Group.

“This year’s record re­sults rep­re­sent our drive to push the bound­aries of avi­a­tion, ques­tion­ing the norms and ad­vo­cat­ing for open and fair competition. De­spite un­fore­seen chal­lenges in the form of po­lit­i­cal in­sta­bil­ity and shock­ing nat­u­ral dis­as­ters we have man­aged, through sheer de­ter­mi­na­tion, nim­ble­ness and quick think­ing, to pro­duce our best ever re­sult,” said Sheikh Ahmed.

In the face of many chal­lenges, both po­lit­i­cal and en­vi­ron­men­tal, the Group’s rev­enues in­creased by 26.4 per­cent reach­ing a re­mark­able new level of AED 57.4 bil­lion (US$ 15.6 bil­lion). Strong rev­enue has been the main driver for the Group’s record fi­nan­cial per­for­mance. The Group’s cash bal­ance rose sub­stan­tially to hit a record high at AED 16 bil­lion (US$ 4.4 bil­lion). Dur­ing the year, Dnata forged for­ward with its in­ter­na­tional ex­pan­sion through its proven strat­egy of ac­qui­si­tion. It took own­er­ship of Al­pha Flight Group Ltd, a lead­ing caterer with op­er­a­tions in 61 air­ports glob­ally. By be­ing open to new busi­ness op­por­tu­ni­ties and con­tin­u­ally seek­ing growth Dnata has now be­come the world’s fourth largest air ser­vices provider.

“A clear in­di­ca­tion of our strength, this year’s fi­nan­cial re­sult rep­re­sents the tire­less work of our 57,000 strong work­force. Op­er­at­ing with­out sub­sidy and through a well thought out busi­ness model we have, as a team, been able to con­front ad­ver­sity on many lev­els,” added Sheikh Ahmed.

Cus­tomers’ con­tin­ued pref­er­ence for Emi­rates’ prod­ucts has helped achieve sharp sales growth, record re­turn for the fi­nan­cial year and the air­line’s high­est ever pas­sen­ger num­bers.

“Emi­rates con­tin­ues to dis­miss the per­ceived lim­i­ta­tions of the avi­a­tion in­dus­try, ad­vo­cat­ing for an open skies en­vi­ron­ment that stim­u­lates competition, an un­de­ni­able pos­i­tive for the cus­tomer. The cus­tomer is at the heart of our op­er­a­tions, ev­i­dent in the 31.4 mil­lion pas­sen­gers that flew with us through­out the fi­nan­cial year, an in­crease of 14.5 per­cent or 4 mil­lion pas­sen­gers on last year.”

Emi­rates Air­line’s rev­enues grew by an out­stand­ing 25 per­cent from last year to reach AED 54.4 bil­lion (US$ 14.8 bil­lion). Air­line prof­its of AED 5.4 bil­lion (US$ 1.5 bil­lion) marked an in­crease of 51.9 per­cent over 2009-10’s prof­its of AED 3.5 bil­lion (US$ 964 mil­lion).

Pas­sen­ger Seat Fac­tor, at 80.0 per­cent, in­di­cates the air­line’s high­est ever, a re­mark­able achieve­ment given a sub­stan­tial in­crease in seat ca­pac­ity (Avail­able Seat Kilo­me­tres – ASKMs) of 13 per­cent. Over­all ca­pac­ity, mea­sured in ATKM (Avail­able Tonne Kilo­me­ters), rose 12.4 per­cent to 32,057 mil­lion tonne-kilo­me­ters.

Dur­ing the year, in line with the air­lines strate­gic growth plan, Emi­rates sig­nif­i­cantly in­creased its or­der for new air­craft, adding 32 ad­di­tional Air­bus A380s and 30 Boe­ing 777300ERs. The com­bined value of these or­ders is US $13.4 bil­lion and brings the air­line’s to­tal num­ber of air­craft on or­der at the end of the fi­nan­cial year to 193, worth over US $66 bil­lion.

Emi­rates took de­liv­ery of eight new air­craft dur­ing the year in­clud­ing one Boe­ing 777-300ER and seven of the air­line’s flag­ship A380s ex­pand­ing the air­line’s fleet size to a ro­bust 148 air­craft. Emi­rates re­mains the world’s largest A380 and Boe­ing 777 op­er­a­tor with 15 A380s and 86 Boe­ing 777s.

Ex­pand­ing its global foot­print the air­line launched pas­sen­ger ser­vices to six new des­ti­na­tions – Am­s­ter­dam, Prague, Al Me­d­i­nah al Mu­nawarah, Madrid, Dakar and Basra – as well as in­creas­ing fre­quency and ca­pac­ity to a num­ber of high-de­mand cities across mul­ti­ple mar­kets, most no­tably the US, Asia, Mid­dle East and Africa.

As of 31st March 2011, the Group and its sub­sidiaries em­ployed 57,000 staff, rep­re­sent­ing 163 dif­fer­ent na­tion­al­i­ties. The full 2010-11 An­nual Re­port of the Emi­rates Group – com­pris­ing Emi­rates Air­line, Dnata and their sub­sidiary com­pa­nies – is avail­able on: www.theemi­rates­group.com/an­nu­al­re­sults

His High­ness Sheikh Ahmed bin Saeed Al-Mak­toum, Chair­man and Chief Ex­ec­u­tive,

Emi­rates Air­line and Group

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