|Emirates A380. Photo copyright Devesh Agarwal.|
The Emirates Group, the aviation holding company of the Al Maktoum family which rules Dubai, and the parent of Emirates airline, announced its first half (April to September) results of the fiscal year 2014 (ending March 31, 2014) today.
The Emirates Group revenues reached AED 42.3 billion (US$ 11.5 billion) for the first six months of its current fiscal year ending September 30, 2013, up 13% from AED 37.5 billion (US$ 10.2 billion) at 30 September 2012.
Net profit for the Group rose to AED 2.2 billion (US$ 600 million) an increase of 4% over the last year’s results.
The Group’s cash position on 30 September 2013 came down to AED 18.2 billion (US$ 4.9 billion), from AED 27.0 billion (US$ 7.3 billion) six months earlier. This is after a AED 1.8 billion bond repayment which matured in July 2013, a AED 367 million first instalment payment on a USD one billion Sukuk (Islamic equivalent of bonds), and a AED 7 billion injection back into the business to fund new aircraft, engines, spares and other projects across the Group.
His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group said
“The global business environment continues to be challenging. We have stayed agile even as we grow, and this ability to adapt and act quickly has been key to our success. Our investments in the infrastructure of both Emirates and dnata continue to pay off,”
Group employee numbers increased 11.7% to over 75,800 from six months earlier.
Capacity measured in Available Seat Kilometres (ASK), grew 16.9% on the addition of ten aircraft – six A380s, three 777s and one 777 freighter in the reported six month. 15 more new aircraft scheduled to be delivered to the airline before March 31, 2014, the end of the current fiscal year FY2014.
Passenger traffic carried measured in Revenue Passenger Kilometres (RPK) was up 16.1% with a load factor averaging 79.2% down from last year’s 79.7%. In number, Emirates carried 21.5 million passengers in the six months, since 1 April 2013, up 15% from the same period last year.
Cargo volumes increased 5.2% but the airline has not released the actual performance nomrally measured in FTK (Freight Ton Kilometre) or capacity in ATK (Available Ton Kilometre) .
Emirates airline’s revenue, including other operating income, for the six months was AED 39.8 billion (US$ 10.8 billion) up 12% from last year’s first half revenue of AED 35.4 billion (US$ 9.6 billion) to return a 2% increase in net profit of AED 1.7 billion (US$ 475 million).
Fuel prices constituted 39% of the airline’s expenditures. The Union and state governments of India would be well advised to observe the disadvantage they put Indian carriers to, thanks to their greedy excessive taxation regime which makes fuel between 45%~50% of expenditure.
Emirates launched new routes 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. The airline now flies to 137 destinations in 77 countries, up from 126 cities last year in 74 countries. Additional new routes to be added in the remaining part of the fiscal year include Kabul, Kiev, Taipei and Boston.
The airline also celebrated the five year operating anniversary, of its A380 super-jumbo. Emirates’ A380s have carried 18 million passengers since its first flight on August 1, 2008 from Dubai to New York.
dnata airport services and infrastructure
dnata (formerly Dubai National Air Transport Association) now operates in 38 countries with revenues including other operating income of AED 3.7 billion (US$ 1 billion), 18% higher compared to AED 3.2 billion (US$ 864 million) last year. Overall profit for dnata rose strongly by 13% to AED 458 million (US$ 125 million).
dnata’s airport operations was the largest contributor to revenues with AED 1.4 billion (US$ 375 million), a 16% increase from last year’s first half revenues of AED 1.2 billion (US$ 324 million). The number of aircraft handled by dnata rose 9%, to 141,845
dnata’s in-flight catering operation, which operates the world’s largest flight kitchen, in Dubai, United Arab Emirates, recorded strong growth thanks to its acquisition of Servair in Italy in June 2013. Revenues were up 39% to AED 891 million (US$ 243 million). 22.4 million meals were uplifted for the first half of the fiscal year, up a massive 81% from last year.
Revenue from dnata’s Travel Services operation contributed AED 303 million (US$ 83 million), up 16% from the same period last year.
dnata’s cargo handling division grew revenues 4% to AED 546 million (US$ 149 million) on account of increased tonnage mainly for dnata’s UK operation and in Switzerland which rose in total by 2% to 809,236 tonnes.