Emirates profits fall sharply by 70 % in 2016-17
View(s):The Emirates Group, running one of the world’s most successful airlines, went through a disastrous year ending March 3, 2017 with profits falling as much as by 70 per cent to AED 2.5 billion (US$ 670 million) against the previous year owing to a turbulent year for aviation and travel.
In a media statement, the group said revenue reached AED 94.7 billion ($25.8 billion), marginally up by 2 per cent over last year’s results while the group’s cash balance fell by 19 per cent to AED 19.1 billion ($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: “Over the years, we have invested to build our business capabilities and brand reputation. We now reap the benefits as these strong foundations have helped us to weather the destabilising events which have impacted travel demand during the year – from the Brexit vote to Europe’s immigration challenges and terror attacks, from the new policies impacting air travel into the US, to currency devaluation and funds repatriation issues in parts of Africa, and the continued knock-on effect of a sluggish oil and gas industry on business confidence and travel demand.”
In 2016-17, the group collectively invested AED 13.7 billion ($3.7 billion) in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives.
Emirates received 35 new aircraft, its highest number during a financial year, comprising 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. The airline carried a record 56.1 million passengers (up 8 per cent) during the year.
The statement said that Emirates facing significant currency devaluations against the US dollar and fare adjustments due to a highly competitive business environment, managed to keep its revenue stable at AED 85.1 billion ($23.2 billion). “The relentless rise of the US dollar against currencies in most of Emirates’ key markets had an AED 2.1 billion ($572 million) impact on airline revenue, and to the airline’s bottom line,” it said.