Emirates announces $1 bn profit in 2017-18 year
View(s):Dubai-based Emirates Group, one of the most powerful airlines in the world, this week announced its annual results saying it posted a profit of AED 4.1 billion (US$ 1.1 billion) for the financial year ended 31 March 2018, up 67 per cent from last year.
The group’s revenue reached AED 102.4 billion ($27.9.billion), an increase of 8 per cent over last year’s results while the cash balance increased by 33 per cent to AED 25.4 billion ($ 6.9 billion) supported by the bond issued in March and strong sales due to the early Easter holidays at the end of March.
In line with the overall profit, the group declared a dividend of AED 2 billion ($545 million) to the Investment Corporation of Dubai.
In a media release, Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: “Business conditions in 2017-18, while improved, remained tough. We saw ongoing political instability, currency volatility and devaluations in Africa, rising oil prices which drove our costs up, and downward pressure on margins from relentless competition. On the positive side, we benefitted from a healthy recovery in the global air cargo industry, as well as the relative strengthening of key currencies against the US dollar. We have always responded to the challenges of each business cycle with agility, while never losing sight of the future, and this year was no exception. In 2017-18, Emirates and dnata delivered our 30th consecutive year of profit, recorded growth across the business, and continued to invest in initiatives and infrastructure that will secure our future success.”
In 2017-18, the group collectively invested AED 9 billion ($ 2.5 billion) in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives.
Emirates announced two significant commitments for new aircraft during the year: a $15.1 billion agreement for 40 Boeing 787-10 Dreamliners which will be delivered from 2022, and a $16 billion agreement for 36 additional A380 aircraft, including 16 options.
dnata’s key investments during the year included: acquisition of AirLogistix US, marking its entry in the US cargo market; expansion of cargo handling capabilities with new warehouses and equipment at London Gatwick, Amsterdam-Schiphol, and Adelaide; new catering facilities in Dublin and Melbourne; and new marhaba lounges in Karachi and Melbourne.
Across its more than 80 subsidiaries, the group’s total workforce declined by 2 per cent to 103,363, representing over 160 different nationalities, as part of the overall productivity improvement initiatives in Emirates and dnata.