Emirates Group announces 26th consecutive year of profit
The Emirates Group today announced its 26th consecutive year of profit and company-wide growth, ending the year in a strong position despite competitive pressure and a global economic environment that is only slowly recovering.
The financial year ending 31st March 2014 also marked an unprecedented level of investment across the Group, continued expansion of its global footprint, and the achievement of new capacity milestones.
Released today in its 2013-14 Annual Report, the Emirates Group posted an AED 4.1 billion (US$ 1.1 billion) profit, up 32% from last year. The Group’s revenue reached AED 87.8 billion (US$ 23.9 billion), an increase of 13% over last year’s results, and the Group’s cash balance remained strong at AED 19.0 billion (US$ 5.2 billion).
“Achieving our 26th consecutive year of profit in a financial year marked by record increases in capacity and significant business investments across the Group, is testimony to the strength of our brands and our business fundamentals,” said H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.
“Throughout 2013-14 the Group has collectively invested over AED 22.0 billion (US$ 6.0 billion), the highest amount ever in one financial year. We know that to be a sustainable and profitable business we have to keep adding value to our stakeholders, our customers, partners and employees. To do this, we need efficient new aircraft, quality products and services, and cutting-edge facilities. Every dirham invested has been carefully considered against short and long-term goals – be it enhancing our capabilities, improving our product, or expanding our business footprint.” The Group also continued to invest in and expand on its employee base, increasing its overall staff count by 11% to over 75,000-strong representing over 160 different nationalities, across its more than 80 subsidiaries and companies. Revenue per airline employee increased by 4% to AED 1.9 million (US$ 0.5 million).
“We are moving into the new financial year with confidence, and a strong foundation for continued profitability with our strong balance sheet, solid track record, diverse global portfolio and international talent pool,” said Sheikh Ahmed. “Operating in a dynamic and highly-competitive environment means we have to stay agile, and work even harder to meet and exceed our customers’ expectations. With the help of our 75,000 strong multicultural workforce, we have no doubt that we will be able to capitalise on the opportunities in the year ahead.” Similar to the last financial year, the Group declared a dividend of AED1 billion (US$ 280 million) to the Investment Corporation of Dubai.
On the Cargo side, the Emirates SkyCargo’s tonnage strongly increased by 8% to reach a remarkable 2.3 million tonnes in a flat and challenging airfreight market, highlighting its ability to grow revenues against the industry norm. This year, freight yield per Freight Tonne Kilometre (FTKM) decreased by 1%.
At the end of the financial year, the Emirates SkyCargo freighter fleet had grown to 12 aircraft – ten on operating lease and two on wet lease.
Emirates’ Destination and Leisure Management including hotels recorded revenue of AED 623 million (US$ 170 million), an impressive increase of 35% over last year. This positive development was supported by the first full year of operation of the JW Marriott Marquis Hotel in Dubai, the world’s tallest hotel. The second tower of the hotel will be fully operational later this year.
In its 55 years of operation, 2013-14 has been dnata’s most successful yet, building on its very strong results in the previous year. dnata grew its revenue to AED 7.6 billion (US$ 2.1 billion), an increase of 14%, through organic growth and as well as strategic international acquisitions. For the first time in the company’s history, dnata’s international business accounted for 50% of its revenue.
dnata also outperformed last year’s record profit to reach AED 829 million (US$ 226 million).
Source : WAM News Agency for United Arab Emirates