The Dubai-based Emirates Group posted a record profit of Dh8.2 billion ($2.2 billion) for the financial year ending March 31, up 50% from last year, the company said.
The group’s revenue reached Dh93 billion ($25.3 billion), a decrease of 3% over last year’s results, and the group’s cash balance increased strongly to Dh23.5 billion ($6.4 billion).
The group said this is the 28th consecutive year of profit for the company and it is in a strong position despite the global and operational challenges during this period.
During the 2015-2016 financial year, both 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.
Emirates, the group’s flagship airline operation, reported a 56% jump in annual net profit, with lower oil prices helping to reduce operating costs. The carrier reported a profit of Dh7.1 billion ($1.93 billion) for the financial year to March 31.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: “Emirates and dnata delivered record profits, solid business results, and continued to grow throughout 2015-2016. Against an unfavorable 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.”
“Our ongoing investments to develop our people and enhance our business performance enable us to react with agility to the new challenges and opportunities that every year brings. In 2015-2016, the group collectively invested over Dh17.3 billion ($4.7 billion) in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives,” he added.
The group’s employee base across its more than 80 subsidiaries and companies increased by 13% to over 95,000 representing over 160 different nationalities.
In line with the overall profit, the Group declared a dividend of Dh2.5 billion ($681 million) to the Investment Corporation of Dubai.
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: Bali, Bologna, Cebu, Clark, Istanbul (Sabiha Gökçen), Mashhad, Multan, 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.
Carrying a record 51.9 million passengers (up 8%), Emirates crossed the 50 million passenger milestone, and achieved a Passenger Seat Factor of 76.5%.
Emirates SkyCargo continues to play an integral role in the company’s expanding operations, contributing 14% of the airline’s total transport revenue.
Emirates’ hotels recorded revenue of Dh700 million ($191 million), an increase of 1% over last year.
In 2015-2016 has been dnata’s most profitable yet, crossing Dh1 billion ($287 million) profit for the first time. Building on its strong results in the previous year, dnata's revenue grew to Dh10.6 billion ($2.9 billion). Dnata’s international business now accounts for more than 64% of its revenue.