Emirates Group flies to Record Profits
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