Emirates Group records $845 million net profitMay 9, 2013
Karachi/ Dubai: The Emirates Group has today announced its 25th consecutive year of profit and companywide growth ending the year in a strong position despite continuing high fuel prices and a weak global economic environment. The financial year also ended with some very positive newly reached capacity milestones throughout the business.
Released in the Group’s 201213 Annual Report, the company posted an AED 3.1 billion US$ 845 million net profit, up 34 per cent from last year. Even with external challenges, the Group’s revenue reached AED 77.5 billion US$ 21.1 billion an increase of 17 per cent over last year’s results. The Group’s cash balance grew by 53 per cent reaching a solid AED 27.0 billion US$ 7.3 billion.
“Achieving our 25th consecutive year of profit in a financial year with our largest ever increase in capacity across the network is an achievement that speaks to the strength of our brands and our leadership,” said His Highness H.H Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.
“Throughout the 201213 financial year the Group has collectively invested over AED 13.8billion US$ 3.8 billion in new aircraft, products, services and handling facilities as well as the newly opened JW Marriott Marquis Hotel in Dubai. This investment has resulted in an increased customer base and a rise in global brand awareness. Every dirham that we earn is strategically placed back into our business and it is this tenacious approach that has allowed the Group to maintain such strong and consistent profitability under challenging circumstances.”
Despite a difficult operating environment, the Group continued to invest in and expand on its employee base, increasing its overall staff count by 12 percent to 68,000.
Emirates continued with its growth plan and during the financial year saw the largest increase in capacity in the airline’s history receiving a staggering 34 new aircraft, the highest in any single year and an unprecedented achievement. These aircraft were funded by raising more than US$ 7.8billion, also a first, through a variety of financing structures. Overall capacity measured in Available Tonne Kilometres ATKMs increased by 5.5 billion tonne kilometres. Other significant capacity increases include launching 10 new destinations across six continents, shipping more than 2 million tonnes of cargo for the first time and carrying an additional 5.4 million passengers over last year, the highest increase in a financial year.
In the 201213 financial year Emirates’ fuel bill increased by 15 per cent over last year to reach AED 27.9 billion US$ 7.6 billion. With total operating costs increasing by 16 per cent compared to a revenue increase of 17 per cent over last year.
Emirates revenue reached a record high of AED 73.1 billion US$ 19.9 billion growing by 17per cent when compared to the 201112 financial year. Although the average price of jet fuel did not increase over last year, it remains high and has impacted Emirates’ bottom line with the airline’s profit at AED 2.3 billion US$ 622 million representing an increase of 52per cent over last year’s results.
Carrying a record 39.4 million passengers, an increase of 16 per cent, Emirates logged a robust Passenger Seat Factor, at 80 per cent, remaining consistent with last year’s results. With an increase in seat capacity? Available Seat Kilometres ASKMs of 18 per cent the result highlights a strong consumer desire to fly on Emirates’ state-of-the-art aircraft.
Passenger yield remained steady with 30.5 fils 8.3 US cents per Revenue Passenger Kilometre RPKM.
Revenue generated from across Emirates’ six regions continues to be well balanced, with no region contributing more than 30 per cent of overall revenues. East Asia and Australasia remained the highest revenue contributing region with AED 20.9billion US$ 5.7 billion up 15 per cent from 201112. Europe, up 18 per cent to AED 20.1billion US$ 5.5 billion and the Americas up 24 per cent to AED 8.3 billion US$ 2.3 billion saw the most significant growth, reflecting new destinations as well as increased frequency and capacity to these regions.
Across the rest of the globe Emirates saw strong revenue increases from West Asia and the Indian Ocean up 13 per cent to AED 8.0 billion US$ 2.2 billion, Gulf/Middle East up 13 percent to AED 7.1 billion US$ 1.9 billion and Africa with AED 6.7billion US$1.8 billion in revenue, up 10 per cent.