Emirates Group profits plunge 70% to Dh2.5b
Emirates Group reported on
Thursday a 70 per cent decline in its net profit, which reached Dh2.5 billion
for the financial year ending March 31, 2017, as the group cited “a turbulent
year for aviation and travel.”
The
group’s revenues for the year were up 2 per cent year-on-year to reach Dh94.7
billion.
In
a statement, Shaikh Ahmad Bin Saeed Al Maktoum, chairman and chief executive
officer of Emirates Airline and Group, said 2016-2017 was one of the company’s
“most challenging years to date.”
“We
remain optimistic for the future of our industry, although we expect the year
ahead to remain challenging, with hyper competition squeezing airline yields,
and volatility in many markets impacting travel flows and demand,” he said.
Shaikh
Ahmad also cited other challenges during the year that impacted travel,
including the UK’s vote to leave the European Union, Europe’s immigration
challenges, terror attacks, currency fluctuations, and new policies regarding
air travel to the US from Middle Eastern airports.
Meanwhile,
Emirates airline reported an 82 per cent decline in its profits for the year to
reach Dh1.3 billion. The airline’s revenues remained stable at Dh85.1 billion,
as it carried 56.1 million passengers (up 8 per cent compared to last year).
Europe
was the highest revenue-contributing region, with Dh23.9 billion in airline
revenues coming from the continent.
Total
operating costs increased by 8 per cent year-on-year, with fuel remaining the
biggest cost component for the airline. Though average jet fuel prices fell
slightly during the year, Emirates’ fuel bill increased by 6 per cent to Dh21
billion due to capacity increase.
The
carrier received 35 new aircraft during the year, comprising of 19 A380s and 16
Boeing 777-300ERs. It also phased out 27 older aircraft, bringing Emirates’
total fleet count to 259 at the end of March.
From
an operational perspective, Emirates launched six new passenger destinations,
and added capacity to nine cities on its existing route network.
As for dnata, its profits
crossed Dh1.2 billion for the first time, while revenues jumped 15 per cent to
reach Dh12.2 billion. The growth was supported by new acquisitions in the US
and in the Czech Republic.
During
the year, Emirates Group invested Dh13.7 billion in new aircraft and equipment,
acquisition of companies, technology, and staff initiatives.
Shaikh
Ahmad said these investments will strengthen the group’s resilience, and allow
it to adapt to the “volatile business climate and fast changing consumer
expectations.”
As
for dnata, its profits crossed Dh1.2 billion for the first time, while revenues
jumped 15 per cent to reach Dh12.2 billion. The growth was supported by new
acquisitions in the US and in the Czech Republic.
During
the year, Emirates Group invested Dh13.7 billion in new aircraft and equipment,
acquisition of companies, technology, and staff initiatives.
Shaikh
Ahmad said these investments will strengthen the group’s resilience, and allow
it to adapt to the “volatile business climate and fast changing consumer
expectations.”
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