Emirates Airline sees profit up by 42.5%

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Dubai-based Emirates Airline has posted a 42.5 percent increase in profits to $887m in the last financial year, on the back of a 13 percent rise in revenue to $22.5bn.

Meanwhile, Emirates Group – of which the airline is a subsidiary - posted a 31.6 percent increase in profits to $1.1bn, helped by a 13.2 percent increase in revenues to $23.9bn.

Airline services subsidiary dnata recorded a 1.2 percent rise in profits to $226m, resulting from a 14 percent rise in revenue to $2.1bn.

The number of passengers carried by the airline rose by 5.1m, or 13 percent, to 44.5m, while seat factor decreased by 0.3 percent to 79.4 percent.

Hailing the 26th consecutive year of profit, Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO of Emirates Group, said the results reflected record increases in capacity, and a record $6bn investment across the group, including new aircraft, facilities, staff and acquisitions.

Emirates’ fuel bill over the year rose 10 percent to $8.4bn. The group’s cash balance decreased by 29.6 percent to $5.2bn, which Sheikh Ahmed said was still "healthy". The group's staff numbers increased by 11.2 percent to 75,496.

He confirmed the state-owned company would return a $280m dividend to the Dubai government's Investment Corporation of Dubai.

Sheikh Ahmed said the 80-day runway closure at Dubai Airport for essential maintenance would be a key challenge this year and while supported by Emirates he estimated it would cost the airline AED1bn ($272m) in lost revenue.

He said competition from other airlines, which "lobby their government to restrict us" remained another challenge, but was why it had invested significantly back into the business.

It received 24 new aircraft for the year and expected delivery of 20 new aircraft this financial year, he said.

In 2013-14 it raised a total of $3.3bn through a variety of financing structures, mainly to secure it's ongoing fleet expansion, with eight aircraft delivered in the financial year funded through two corporate bonds issued in early 2013 worth $1.8bn.

Across its six regions, East Asia and Australasia remained the highest revenue contributors at $6.5bn - a 14 percent increase on the previous year.

Emirates SkyCargo operations recorded a nine percent increase in revenue to $3.1bn, while revenue for its destination and leisure management division, including operation of JW Marriott Marquis Hotel in Dubai,  increased by 35 percent to $170m.

Sheikh Ahmed said the second tower at the JW Marriott would be fully operational by the end of the year.

"The Emirates Group is moving into the new financial year with confidence and a strong foundation for continuing profitability. We have a strong balance sheet, a solid track record and an international talent pool," he said.

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Posted by: Matt Williams

Emirates expansion in comparison to other carriers is frankly mind boggling, just as I have witnessed a city being built around me over these past 10years I now see Emirates as the number one in the world. Truly breathtaking!

http://www.worldairlineawards.com/awards_2013/airline2013_top20.htm

Posted by: ulevpri

And now?
This means basically, that the profit is far beyond the expectations. But does this means, that your Pilots -who still fall under a bonus scheme- will get their Bonus finally? Years now you found silly excuses as an Airline to not pay the Bonuses to your Pilots, though you know that without them, you are nothing...
Excuse this time? Profit did not went up to 50% so you can't pay again? Every leaving Pilot is well deserved, if you treat this People like this, this is what should happen. That your Pilots running away... seems there is a good reason for this, right?

Posted by: Fizz

I.E. More excuses to not pay deserving bonuses to employees...well done EK!

Posted by: Ulevpri

@Emirates;
I doubt that you talk on behalf of EK but if so, its another silly excuse. It is not always the Pilots who have to bear the costs for changes in the schedule, construction, expansion plans etc etc... The Pilot has to jump into the cockpit and has to make a proper job, being proofed by EK every sixth month, regardless the circumstances around him! So it can't be that anything is done on the shoulders of the people who make your business possible!
If a company forgets to develop his people than the clear result is that they will leave, and they are right! EK is not paying Bonuses, but was able to sponsor a football club last year with Millions and Millions? How can this be justified towards the people who are waiting for things granted in the contract?

Posted by: Emirates

Please do keep in mind that, we are an attractive employer for new and experienced to ensure that we keep up with the growth in demand. We have an overwhelmingly Emiratis lined up in the recruitment process and training who we encourage to take up as many jobs as possible.

We cannot force you to stay and as per initial communications go, we are unable to give out bonuses this year because of the forecast in the drop of revenue due to the scheduled reduction of operations over the maintenance window of Dubai International Airport.

Please carry on your hard work and dedication, propel Emirates forward and expect little in return unless your respective grade (grade 10 onwards, i believe) falls under senior management levels.

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