Thursday, May 8, 2014
Emirates Airline sees profit up by 42.5%
Dubai-based Emirates Airline has posted a 42.5 percent increase in profits to $887m in the last financial year, on the back of a 13 percent rise in revenue to $22.5bn.
Meanwhile, Emirates Group – of which the airline is a subsidiary - posted a 31.6 percent increase in profits to $1.1bn, helped by a 13.2 percent increase in revenues to $23.9bn.
Airline services subsidiary dnata recorded a 1.2 percent rise in profits to $226m, resulting from a 14 percent rise in revenue to $2.1bn.
The number of passengers carried by the airline rose by 5.1m, or 13 percent, to 44.5m, while seat factor decreased by 0.3 percent to 79.4 percent.
Hailing the 26th consecutive year of profit, Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO of Emirates Group, said the results reflected record increases in capacity, and a record $6bn investment across the group, including new aircraft, facilities, staff and acquisitions.
Emirates’ fuel bill over the year rose 10 percent to $8.4bn. The group’s cash balance decreased by 29.6 percent to $5.2bn, which Sheikh Ahmed said was still "healthy". The group's staff numbers increased by 11.2 percent to 75,496.
He confirmed the state-owned company would return a $280m dividend to the Dubai government's Investment Corporation of Dubai.
Sheikh Ahmed said the 80-day runway closure at Dubai Airport for essential maintenance would be a key challenge this year and while supported by Emirates he estimated it would cost the airline AED1bn ($272m) in lost revenue.
He said competition from other airlines, which "lobby their government to restrict us" remained another challenge, but was why it had invested significantly back into the business.
It received 24 new aircraft for the year and expected delivery of 20 new aircraft this financial year, he said.
In 2013-14 it raised a total of $3.3bn through a variety of financing structures, mainly to secure it's ongoing fleet expansion, with eight aircraft delivered in the financial year funded through two corporate bonds issued in early 2013 worth $1.8bn.
Across its six regions, East Asia and Australasia remained the highest revenue contributors at $6.5bn - a 14 percent increase on the previous year.
Emirates SkyCargo operations recorded a nine percent increase in revenue to $3.1bn, while revenue for its destination and leisure management division, including operation of JW Marriott Marquis Hotel in Dubai, increased by 35 percent to $170m.
Sheikh Ahmed said the second tower at the JW Marriott would be fully operational by the end of the year.
"The Emirates Group is moving into the new financial year with confidence and a strong foundation for continuing profitability. We have a strong balance sheet, a solid track record and an international talent pool," he said.