Emirates announces half-year profits

The Emirates Group revenues reached AED 42.3 billion (US$ 11.5 billion) for the first six months of its current fiscal year ending 30 September 2013, up 13% from AED 37.5 billion (US$ 10.2 billion) at 30 September 2012. 

Net profit for the Group rose to AED 2.2 billion (US$ 600 million) an increase of 4% over the last year’s results. The Group’s cash position on 30 September 2013 was at AED 18.2 billion (US$ 4.9 billion), compared to AED 27.0 billion (US$ 7.3 billion) as at 31 March 2013. This is after a AED 1.8 billion bond repayment which matured in July 2013, a AED 367 million first instalment payment on a USD 1 billion Sukuk, and a AED 7 billion injection back into the business to fund new aircraft, engines, spares and other projects across the Group. 

“The global business environment continues to be challenging.  We have stayed agile even as we grow, and this ability to adapt and act quickly has been key to our success. Our investments in the infrastructure of both Emirates and dnata continue to pay off and while we keep a close watch on managing our immediate business targets, we never lose sight of our long-term goals, and that is why we continue to invest to build the business,” said His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group.  

In the past six months, the Group continued to invest in and expand its employee base, increasing its overall staff count by 11.7% to over 75,800 compared with 31 March 2013. 

During the first six months of the fiscal year Emirates received 10 wide-body aircraft – six A380s, three 777s and one 777 freighter, with 15 more new aircraft scheduled to be delivered before the end of the financial year (31 March 2014). Emirates also invested in its network by launching services to two new destinations – Haneda and Stockholm, bringing the total count of new routes launched in the past 12 months to seven including Adelaide, Lyon, Phuket, Warsaw and Algiers.  

Despite the fundamental challenges of high fuel prices, a still-recovering global economy, and a strong performance of the US dollar against other major currencies impacting revenues, Emirates continues to make a profit. In the first half of the 2013-14 fiscal year, Emirates net profit is AED 1.7 billion (US$ 475 million), up 2% from the same period last year. 

“Emirates’ half-year scorecard shows a steady demand for our products and services. Our capacity and route growth continue to match and meet passenger demand. High fuel prices, accounting for 39% of our expenditures, and the unfavourable currency exchange environment continue to eat into our profits. However, we remain steadfast in our vision to be the airline of choice for international air services, and we will invest in our people and our infrastructure, and work closely with our partners to bring this to fruition,” said HH Sheikh Ahmed.” 

Analyst Saj Ahmad commented: “Emirates rise in profits, while slightly flat at just 2% over the same period last year still demonstrates a robust showing of $475m - this sort of financial performance amidst a backdrop of fuel price volatility and continued expansion is something many airlines can only dream of achieving. 

“With revenue passenger kilometres surging 16%, despite carrying 15% more passengers highlights Emirates' robust demand it experiences - and in concert with the record-breaking traffic figures seen at Dubai International, it's clear that Emirates is a key catalyst to sustaining that rise in passenger numbers as the airlines expands its route network and inducts more airplanes.”

Ahmad added: “Fuel costs, despite operating a modern fleet of 777-300ERs and A380s, amounted to 39% of its expenditure, but Emirates' health cash balance still allowed the airline to repay AED 2bn in bond repayments while ploughing a further AED 7bn back into the wider business, leaving almost $5bn on hand - a figure rivals will no doubt be green with envy to see.

“Overall this is a good set of figures which underscores just why the impending record-breaking order this weekend at the start of the Dubai Air Show for over 100 new Boeing 777-8X and 777-9X airplanes is vital to Emirates' long term growth and sustainability. The airlines exceptional management team shows yet again why they and the Emirates machine is the best in the business.”

 His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group