• Monday, May 27, 2024
businessday logo

BusinessDay

Emirates group posts $845m in 2012/2013 financial year

businessday-icon

The Emirates Group has announced its 25th consecutive year of profit and company-wide growth ending the year 2012-13 with Arab Emirates Dirham -AED 3.1 billion ($ 845 million) net profit, up 34 per cent from last year.

The group said it ended the year in a strong position despite continuing high fuel prices and a weak global economic environment.

The financial year, it said, also ended with some very positive newly reached capacity milestones throughout the business. It has also passed the 39 million passenger milestone

Even with external challenges, the Group’s revenue reached AED 77.5 billion ($ 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 ($ 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 Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.

He added that, ‘throughout the 2012-13 financial year, the Group has collectively invested over AED 13.8 billion ($ 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 said it continued to invest in and expand on its employee base, increasing its overall staff count by 12 per cent 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 $7.8 billion, 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.

“Managing volatile exchange rates, coupled with a persistently high fuel bill accounting for 40 per cent of our total expenditures, has required continued strong resolve,” added Sheikh Ahmed. Even with these lingering challenges we continue to grow and remain profitable despite the industry norms because we continue to rely on our proven business model and understanding of the marketplace.”

 

SADE WILLIAMS