Emirates Group Posts US$ 670 million Profit for 2016-17
A Monitor Report 11 May, 2017 | 2146 Views|-+
Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.
Dhaka: The Emirates Group, comprising Emirates Airline and dnata and their susididiaries, today May, 11 announced its 29th consecutive year of profit and steady business expansion, despite a turbulent year for aviation and travel.
Released today in its 2016-17 Annual Report, the Emirates Group posted a US$ 670 million profit for the financial year ending 31 March 2017, down 70% from last year’s record profit. The Group’s revenue reached US$ 25.8 billion, an increase of 2% over last year’s results, and the Group’s cash balance decreased by 19% to US$ 5.2 billion mainly due to the repayment of two bonds on maturity and ongoing high investments into its fleet and aircraft related assets.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: “Emirates and dnata have continued to deliver profits and grow the business, despite 2016-17 having been one of our most challenging years to date.”
In 2016-17, the Group collectively invested US$ 3.7 billion in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives.
Sheikh Ahmed said: “These investments will further strengthen our resilience, even as we extend our competitive edge, and adapt our businesses to the volatile business climate and fast changing consumer expectations. “
Main sister concern of the Group , Emirates Airline successfully managed increased competitive pressure across all markets to remain profitable with US$ 340 million, a decrease of 82% over last year’s record results. During the period Emirates carried a record 56.1 million passengers (up 8%), and achieved a Passenger Seat Factor of 75.1%. Emirates launched six new passenger destinations and added services and capacity to nine cities on its existing route network
Emirates’ total passenger and cargo capacity crossed the 60 billion mark, to 60.5 billion ATKMs at the end of 2016-17, cementing its position as the world’s largest international carrier.
Emirates received 35 new aircraft, its highest number during a financial year, comprising of 19 A380s and 16 Boeing 777-300ERs. At the same time 27 older aircraft were phased out, bringing its total fleet count to 259 at the end of March. As a result Emirates’ average fleet age down significantly to 63 months, compared with 74 months last year, and the industry average of 140 months.
Against significant currency devaluations against the US dollar and fare adjustments due to a highly competitive business environment, Emirates managed to keep its revenue stable at US$ 23.2 billion.
Emirates SkyCargo continues to play an integral role in the company’s expanding operations, contributing 13% of the airline’s total transport revenue.
Dnata, another sister concern of the Group engaged in airport operations, catering, travel service among others, in its 58 years of operation, made highest profit , crossing US$ 330 million during 2016-17.
Emirates Group across its more than 80 subsidiaries and companies, increased its total workforce by 11% to over 105,000-strong, representing over 160 different nationalities.