Emirates records USD 1.1 billion profit
The Emirates Group has posted USD 1.1 billion profit, up 32 per cent from last year.
In its 2013-14 Annual Report, the Group's revenue reached USD 23.9 billion, an increase of 13 per cent over last year's results and the Group's cash balance remained strong at USD 5.2 billion, the company release said here today.
''Achieving our 26th consecutive year of profit in a financial year marked by record increases in capacity and significant business investments across the Group, is testimony to the strength of our brands and our business fundamentals,'' Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said.
Throughout 2013-14, the group has collectively invested over USD 6.0 billion, the highest amount ever in one financial year.
The Group also continued to invest in and expand on its employee base, increasing its overall staff count by 11 per cent to over 75,000-strong representing over 160 different nationalities, across its more than 80 subsidiaries and companies. Revenue per airline employee increased by 4 per cent to USD 0.5 million.
Similar to the last financial year, the Group declared a dividend of USD 280 million to the Investment Corporation of Dubai.
In 2013-14, Emirates increased capacity by 5.9 billion Available Tonne Kilometres (ATKMs), the largest capacity increase in the airline's history in a single year. This brings Emirates' total passenger and cargo capacity to 46.8 billion ATKMs at the end of the financial year.
The airline also marked a new record of over 1 million block hours in terms of fleet production.
Emirates received 24 new aircraft during the year, including 16 A380s, six Boeing 777-300ERs and two Boeing 777Fs, bringing its total fleet count to 217. The airline remains the world's largest operator of the Boeing 777 and A380 - both aircraft being amongst the most modern and efficient wide-bodied jets in the sky today.
With the delivery of new aircraft, Emirates launched nine new destinations - Boston, Clark, Conakry, Haneda, Kabul, Kiev, Sialkot, Stockholm and Taipei, as well as a new service between Milan and New York.
Emirates revenue for the first time surpassed at a new record of USD 22.5 billion.The airline successfully managed increased competitive pressure across all markets to record a profit of USD 887 million, an increase of 43% over last year's results, and a healthy profit margin of 3.9%.
Carrying a record 44.5 million passengers, up 13 per cent from last year, Emirates maintained a robust Passenger Seat Factor at 79.4 per cent, nearly consistent with last year's results in spite of a 15 per cent increase in seat capacity by Available Seat Kilometres (ASKMs).
Over 18 million passengers had flown on an Emirates A380 when the airline marked its fifth anniversary of A380 operations in August 2013. In 2013-14, Emirates introduced A380 services to Barcelona, Brisbane, London-Gatwick, Los Angeles, Mauritius and Zurich, bringing to 27 the total number of destinations served by its popular flagship aircraft.
Emirates' Los Angeles service is also the world's longest A380 flight at 16 hours and 20 minutes.
Another major landmark was achieved through the refinancing of two A380s through the first ever floating rate capital market bond backed by a COFACE (the French Export Credit Agency) guarantee. Emirates closed the financial year with a healthy USD 3.4 billion cash flow generated from operating activities.
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 USD 6.5 billion, up 14per cent from 2012-13. Gulf and Middle East revenue increased 17 per cent to USD 2.3 billion, and Europe revenue increased 16 per cent to USD 6.4 billion, reflecting new destinations as well as increased frequency and capacity to these regions, the release stated.
Across the rest of the globe Emirates saw strong revenue increases from Africa up 15 per cent to USD 2.1 billion, the America's up 11 per cent to USD 2.5 billion and West Asia and Indian Ocean with USD 2.3 billion in revenue, up by 3 per cent.
Looking forward to 2014-15, Emirates has to date announced five new passenger routes including Abuja, Brussels, Chicago, Kano and Oslo.
The 2013-14 financial year has been a strong one for Emirates SkyCargo who for the first time reported a revenue over USD 3 billion to reach USD 3.1 billion mark, a 9% increase over last year.
Contributing 15 per cent of the airline's total transport revenue Emirates SkyCargo's tonnage strongly increased by 8 per cent to reach a remarkable 2.3 million tonnes in a flat and challenging airfreight market, highlighting its ability to grow revenues against the industry norm. This year, freight yield per Freight TonneKilometre (FTKM) decreased by 1 per cent.
In its 55 years of operation, 2013-14 has been dnata's most successful yet, building on its very strong results in the previous year.
'dnata' grew its revenue to USD 2.1 billion, an increase of 14%, through organic growth and as well as strategic international acquisitions. For the first time in the company's history, dnata's international business accounted for 50% of its revenue.
dnata also outperformed last year's record profit to reach USD 226 million.
(Posted on 12-05-2014)