Emirates Group posts record profits

Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group

During the 2015-16 financial year, its two members- Emirates and dnata- achieved new capacity and profit milestones, as the group continued to expand its global footprint, and strengthen its business through strategic investments.

According to its recent 2015-16 annual report, the Emirates Group posted $2.2 billion profit for the financial year ending March 31, 2016, up 50 per cent from last year.

Emirates SkyCargo

“Emirates and dnata delivered record profits, solid business results, and continued to grow throughout 2015-16. Against an unfavourable currency situation which eroded our revenues and profits, an uncertain global economic environment dogged by weak consumer and investor sentiment, as well as ongoing socio-political instability in many regions around the world, the group’s performance is testament to the success of our business model and strategies,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group.

“In 2015-16, the group collectively invested $4.7 billion in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives. These will build on our strong foundations, extend our competitive edge, and accelerate our progress towards our long-term goals,” Sheikh Ahmed stressed.

The report shows that Emirates’ total passenger and cargo capacity crossed the 56 billion mark, to 56.4 billion Available Tonne Kilometres (ATKMs) at the end of 2015-16, cementing its position as the world’s largest international airline. The airline increased capacity during the year by 5.5 billion ATKMs, or 11 per cent over 2014-15.

Emirates received 29 new aircraft, its highest number during a financial year, including 16 A380s, 12 Boeing 777-300ERs and one Boeing 777F, bringing its total fleet count to 251 at the end of March.

At the same time nine aircraft were phased out, taking the average fleet age down to 74 months or approximately half the industry average of 140 months. 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 eight new passenger destinations, including Bali, Bologna, Cebu, Clark, Istanbul (Sabiha Gökçen), Mashhad, Multan, and Orlando; and two new additional freighter destinations: Columbus and Ciudad del Este.

It also added services and capacity to 34 cities on its existing route network across Africa, Asia, Europe, the Middle East, and North America, offering customers even greater choice and connectivity.

The airline successfully managed increased competitive pressure across all markets to record a profit of $1.9 billion, an increase of 56 per cent over last year’s results, and a healthy profit margin of 8.4 per cent, the strongest margin since 2010-11.

For 2016-17, Emirates has announced new routes to Yinchuan and Zhengzhou in China, Yangon in Myanmar and Hanoi in Vietnam, aside from capacity upgrades to existing destinations.