Emirates Group records half-yearly Dhs1.2b profit

The Emirates Group on Thursday announced its half-year results for its 2019-20 financial year. Group revenue was Dhs53.3 billion (US$ 14.5 billion) for the first six months of 2019-20, down 2 per cent from Dhs 54.4 billion (US$ 14.8 billion) during the same period last year. This slight revenue decline was mainly due to planned capacity reductions during the 45-day Southern Runway closure at Dubai International airport, DXB, and unfavourable currency movements in Europe, Australia, South Africa, India, and Pakistan.

Profitability was up 8 per cent compared to the same period last year, with the Group reporting a 2019-20 half-year net profit of Dhs 1.2 billion (US$ 320 million). The profit improvement was primarily due to the decline in fuel prices of 9 per cent compared to the same period last year, however the gain from lower fuel costs were partially offset by negative currency movements.

The Group’s cash position on 30th September 2019 stood at Dhs 23.0 billion (US$ 6.3 billion), compared to Dhs 22.2 billion (US$ 6.0 billion) as at 31st March 2019.

The Emirates Group delivered a steady and positive performance in the first half of 2019-20, by adapting our strategies to navigate the tough trading conditions and social-political uncertainty in many markets around the world. Both Emirates and dnata worked hard to minimise the impact of the planned runway renovations at DXB on our business and on our customers. We also kept a tight rein on controllable costs and continued to drive efficiency improvement, while ensuring that our resources were deployed nimbly to capitalise on areas of opportunity.

“The lower fuel cost was a welcome respite as we saw our fuel bill drop by Dhs 2.0 billion compared to the same period last year. However, unfavourable currency movements wiped off approximately Dhs1.2 billion from our profits.

“The global outlook is difficult to predict, but we expect the airline and travel industry to continue facing headwinds over the next six months with stiff competition adding downward pressure on margins. As a Group we remain focussed on developing our business, and we will continue to invest in new capabilities that empower our people, and enable us to offer even better products, services, and experiences for our customers.” Sheikh Ahmed Bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: ‘’The Emirates Group’s employee base remained unchanged compared to 31 March 2019, at an overall average staff count of 105,315. This is in line with the company’s planned capacity and business activities, and also reflects the various internal programmes to improve efficiency through the implementation of new technology and workflows.’’ During the first six months of 2019-20, Emirates received 3 Airbus A380s, with 3 more new aircraft scheduled to be delivered before the end of the 2019-20 financial year. It also retired 6 older aircraft from its fleet with a further 2 to be returned by 31 March 2020. The airline’s long-standing strategy to invest in the most advanced wide-body aircraft enables it to improve overall efficiency, minimise its emissions footprint, and provide high quality customer experiences.

Emirates continues to offer ever better connections for its customers across the globe with just one stop in Dubai. In the first six months of its financial year, Emirates added two new passenger routes: Dubai-Bangkok-Phnom Penh, and Dubai-Porto, Portugal. As of 30 September, Emirates’ global network spanned 158 destinations in 84 countries. Its fleet stood at 267 aircraft including freighters.

Emirates also further developed its partnership with flydubai. Both airlines continued to leverage their complementary networks to optimise flight schedules and offer new city-pair connections through Dubai, as well as open new routes including Naples,Italy, and Tashkent,Uzbekistan, in the first half of 2019-20. Customers also enjoy even more benefits with a single loyalty programme under Emirates Skywards, and passengers connecting between Emirates and flydubai can experience seamless transits with 22 flydubai flights now operating from Emirates Terminal 3 at DXB.

Overall capacity during the first six months of the year declined by 7 per cent to 29.7 billion Available Tonne Kilometres,ATKM, mainly due to the DXB runway closure and reduction in fleet during this 45-day period. Capacity measured in Available Seat Kilometres,ASKM, shrunk by 5 per cent, whilst passenger traffic carried measured in Revenue Passenger Kilometres,RPKM,was down by 2 per cent with average Passenger Seat Factor rising to 81.1 per cent, compared with last year’s 78.8 per cent.

WAM