Group records 31st consecutive year of profit of US$ 631mn
The Emirates Group recently announced its 31st consecutive year of profit and steady business expansion.
Released in its 2018-19 Annual Report, the Emirates Group posted a profit of AED 2.3bn (US$ 631mn) for the financial year ended 31 March 2019, down 44% from last year.
The Group’s revenue reached AED 109.3bn (US$ 29.8bn), an increase of 7% over last year’s results.
“2018-19 has been tough, and our performance was not as strong as we would have liked. Higher oil prices and the strengthened US dollar eroded our earnings, even as competition intensified in our key markets. The uptick in global airfreight demand from the previous year appears to have gone into reverse gear, and we also saw travel demand weaken, particularly in our region, impacting both dnata and Emirates,” commented H.H. Sheikh Ahmed Bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.
In 2018-19, the Group collectively invested AED 14.6bn (US$ 3.9bn) in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives, a significant increase over last year’s investment spend of AED 9.0bn (US$ 2.5bn).
Emirates SkyCargo continued to deliver a strong performance in a highly competitive market with dampening demand, contributing to 14% of the airline’s total transport revenue.
In an airfreight market facing unrelenting downward pressure on yields and slowing demand, Emirates’ cargo division reported a revenue of AED 13.1bn (US$ 3.6bn), an increase of 5% over last year, while tonnage carried slightly increased by 1% to reach 2.7mn tonnes.
Freight yield per Freight Tonne Kilometre (FTKM) for the 2nd consecutive year increased by a further 3%, demonstrating Emirates SkyCargo’s ability to retain and win customers on value despite fuel price increases, and a weakened demand in many markets.
dnata performance
For 2018-19, dnata recorded its most profitable year with AED 1.4bn (US$ 394mn) profit.
dnata’s total revenue grew to AED 14.4bn (US$ 3.9bn), up 10%. This reflects its continued business growth across its four business divisions-both organic through customer retention and new contract wins; as well as via its new acquisitions. dnata’s international business now accounts for 70% of its revenue.
