Emirates airline and Group record revenue growth during first half of 2018-19 despite global challenges
A Monitor Report 15 Nov, 2018 | 429 Views | -+
Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group
Dubai: The Emirates Group comprising Emirates airline, dnata and others today, November15, 2018 announced its half-year results for 2018-19 ending on September 2018. The Group saw steady revenue growth compared to the same period last year, however profits were impacted by the significant rise in oil prices, and unfavourable currency movements in certain markets, amidst other challenges for the airline and travel industry.
The Emirates Group revenue was US$ 14.8 billion for the first six months of its 2018-19 financial year, up 10% from US$ 13.5 billion during the same period last year.Profitability was down 53% compared to the same period last year, with the Group reporting a 2018-19 half-year net profit of US$ 296 million. The profit erosion was primarily due to the significant increase in fuel prices of 37% compared to the same period last year, as well as the negative impact of currencies in certain markets.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group said: “Emirates and dnata grew steadily in the first half of 2018-19. Demand for our high quality products and services remained healthy, as we won new and return customers across our businesses and this is reflected in our revenue performance. However, the high fuel cost as well as currency devaluations in markets like India, Brazil, Angola and Iran, wiped approximately AED 4.6 billion from our profits.”
Group’s main concern Emirates airline In the first half of the 2018-19 financial year recorded a net profit of US$ 62 million, down 86%, compared to last year. Emirates revenue, including other operating income, of US$ 13.3 billion was up 10% compared with the US$ 12.1 billion recorded during the same period last year. This result was driven by increased agility in capacity deployment, and improved seat load factors despite fare increases reflect the healthy customer demand for Emirates’ products.
Emirates carried 30.1 million passengers between 1 April and 30 September 2018, up 3% from the same period last year. The volume of cargo uplifted at 1.3 million tonnes is largely unchanged while yield improved by a healthy 11% . As of 30 September, Emirates’ global network spanned 161 destinations in 85 countries. Its fleet stood at 269 aircraft including freighters.Passenger Seat Factor rising to 78.8%, compared with last year’s 77.2%.
The other important of the Group dnata’s overall profit is up by 31% to US$ 235 million. It saw steady growth across its global businesses which now span over 35 countries. In the first half of 2018-19, dnata’s international operations accounted for over 68% of its revenue. dnata’s revenue, including other operating income, is US$ 1.9 billion an 11% increase compared to US$ 1.7 billion last year.