Emirates Airline Reports 2% Net Profit Rise

The Emirates Group has revealed its latest financial results reporting a half-year net profit rise of four per cent on the same period last year.

The group, which includes its airline services arm Dnata, announced figures of Dhs2.2 billion net profit for the first six months of its fiscal year ending 30 September. Revenues reached Dhs42.3 billion, up 13 per cent from Dhs37.5 billion in 2012.

Emirates Airline made a small profit with a two per cent year-on-year net rise with figures of Dhs1.7 billion, while revenue was up 12 per cent on 2012 at Dhs39.8 billion.

Analysis: Emirates’ Half-Year Results – Why Is Profit Flat?

The carrier received 10 wide-body aircraft during the first six months of the fiscal year – including six A380s and three Boeing 777s – with 15 more aircraft due to be delivered before the end of the financial year (31 March 2014).

Emirates also launched new services to 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.

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

“High fuel prices, accounting for 39 per cent 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,” Sheikh Ahmed added.

The Emirates Group’s cash position was at Dhs18.2 billion, down from Dhs27 billion at the end of March earlier in the year. A statement from the group said this was after a Dhs1.8 billion bond repayment matured in July along with a Dhs367 million instalment payment on a $1 billion Sukuk and a Dhs7 billion injection back into the business.

“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.”

The group has expanded its headcount over the last six months by 11.7 per cent to over 75,800 staff.