Emirates Airline sees profit soar by 52%

Dubai airline posts net profit of $622m; Emirates Group profits up 34% to $845m

Dubai-based Emirates Airline has posted a 52 percent increase in profits to $622m in the last financial year.

Meanwhile, Emirates Group – of which the airline is a subsidiary - posted a 34 percent increase in profits to $845m, helped by a 17 percent increase in revenues to $21.1bn.

The number of passengers carried by the airline rose by 15 percent to 39.4 million, while seat factor stayed at 80 percent, the same as last year’s.

Emirates’ fuel bill increased by 15 percent over the year to $7.6bn, while overall revenues at the airline rose 17 percent. The group’s cash balance rose by 53 percent to $7.3bn. 

“Staying the course, our strategy for growth has reaped high benefits this past financial year, which has been our strongest ever in relationship to capacity growth," said Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO of Emirates Group, in a press statement.

"Emirates seat load factor over the last three years has been 80 per cent despite our increase in capacity by 44 per cent during the same period, showing the continued global demand for our product.

During the course of last year, Emirates raised more than $7.8bn in funding for new aircraft, and received a total of 34 new widebody jets in the same period. 

Emirates’ freight arm, SkyCargo, saw tonnage increase 16 percent to 2.1m tonnes. The division accounted for 15 percent of total transport revenues.

The firm’s hotels and leisure division – Destination and Leisure Management – saw a 15 percent rise in revenue to $125m, while dnata also increased revenues by 15 percent to reach $1.8bn.

The announcement is a major improvement on last year, where Emirates’ profits dropped by 72 percent on the back of a 44 percent increase in its fuel bill to $6.6bn.

The global airline industry is estimated to have made $7.6bn in profit in calendar-year 2012, according to the International Air Transport Association (IATA). The profit margin for the industry was just 1.1 percent, reflecting the poor global economic environment and the high oil price.  

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Posted by: Frustration flyer

Next time you fly with Emirates, ask any aircrew how the company treat them: poor wages (AED 10,000 a month), un human working hours (they are flying more than 120 hours per month), not enough money to eat when they are abroad, etc.
Also ask how the company is punishing them with written warnings from not cleaning the airplane before they disembark to collecting salt and pepper shakers! Even salad dressings they need to recycle!
For sure the quality of service will go down the hill and the amount of people leaving the company has already grown. They are trying to hire enough people but the numbers doesn't cover the ones leaving.
Now think twice if you would work in shifts with poor working conditions like that!

Posted by: John Broccoli

It's all just mumbo jumbo... They are digging their own grave by not rewarding employees. They won't care and the service level will deteriorate. It's a natural process.

Posted by: abusidra

In honest business, it means cheating. Such profits are ridiculous and lopsided especially when they are not a monopoly. Earn profits like you take salt in food. I saw several times the flight is filled only a quarter but EK they dont reduce fares.

Posted by: YEs

Rejoycing as you waste your millions (that you should be investing in your own country and people). Wigan athletic made you look pityful! What a joke!

Posted by: disappionted!

EMIRATES has MISUSED THOUSANDS of its EMPLOYEES to reach their target. Business was extremely well in 2012! Real figures are disclosed!

Friday, 10 May 2013 12:26 PM[UAE] - UAE
I am guessing Emirates is part of paying off Dubai Inc's debt??""

Exactly!!! Emirates is paying debts of Dubai, along with RTA which introduced 2 more new toll gates!!!

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