Emirates defends no staff bonus, despite huge profit

Dubai airline said $622m profit was not enough to trigger bonus payments to employees

Emirates Airline has defended its decision not to award staff their annual bonus for the second consecutive year, claiming the 52 percent increase in profits was insufficient.

The Dubai-based carrier – one of the largest in the world by passenger numbers – made AED3.1bn ($622m) profit during 2012-13, which was one of the best results of any comparable international airline.

At the same time, Emirates Group – of which the airline is a subsidiary - posted a 34 percent increase in profits to $845m.

However, the airline said its profit target was not achieved.

While the increase was significant, the profit was still lower than 2009-10 when the airline reached $703m.

Announcing the 2011-12 results last year, it blamed a skyrocketing fuel bill (up 44.4 percent to $6.6bn) for the 72.1 percent slump in profit to $409m.

The below-par result in 2012-13 means bonuses will not be paid to about 60,000 Emirates’ staff, who are generally paid a low base wage that is topped up with benefits such as a flying allowance for cabin crew, free or subsidised housing and significant ticket discounts.

“The Emirates Group provides staff with a bonus based on the group’s financial performance. A profit target is set each year and needs to be met before bonuses are paid,” an Emirates spokesperson said in a statement provided to Arabian Business.

“Although the Emirates Group posted a AED3.1 billion net profit for the 2012/13 financial year, unfortunately, in the face of very challenging economic conditions, our profit target was not reached.

“Therefore, staff, whom we know continue to work very hard, will not receive a bonus on this occasion. They will, however, continue to enjoy the generous benefits package offered to all staff of the Emirates Group.”

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Posted by: maheen

As a family member of a staff, I know what it feels like to not get the bonus. however, I also have sme insight into the way EK staff works. more than 50 % is only there to while away their days and leave at 3.30 pm. they come in at 7 and spend 30-40 mins having breakfast and chitchatting. then, they pretend to do some work and its time for their mid morning tea break which also lasts 30-40 mins. later its lunch which is obviously an hour and 30 mins. and then it preparation to leave for home. Sorry to say, because of these the overall profits are low and everyone suffers!!

Posted by: HeadHigh

maheen's "family member" must be chief skiver to get away with what he/she describes as "work". Never before have I read such misinformed rubbish.

I know for a fact that the EK staff (in UK at least) work there behinds off. They are always short staffed and expected to cover for what is obviously an EK policy here; with overtime pay also being all banned for about 2 years or more now. Also, no flexibility is shown to returning mothers with very young children; a questionable practice under EU law I feel.

The huge levels of EK profits in what is supposed to be challenging financial times can lead one to only conclude that the vast majority of staff MUST BE doing their jobs properly and well.

They shamelessly use the economic downturn as excuse to scare and squeeze their low paid employees, in the knowledge that the option to move to better employers are so very limited now.

In MY view, EK are just very greedy, family unfriendly, and bad employers. Not the only ones, but they are!

Posted by: humanclay57

You're obviously ignorant and know nothing about Emirates staff so mind your own business and refrain from accusing people you don't know of things they don't know. It is obvious that your 'family' member is a sad and unrealistic representation of EK staff and must be fired immediately.

Posted by: MEB

Not only greed and a humiliating salary increase for cabin crew (better to give no salary increase - that would at least have been less offensive) management should realize if it wants committed staff, they themselves should be committed to their staff as well. As everything in life: there has to be a balance. It is a mutual "give and take". Without their staff there would be no Emirates Airlines today! This applies to all management of all industries.

Posted by: MYT

Top managment greed is one of the main reasons that caused the 2008 crises. hope i delivered the message..

Posted by: Louie Tedesco

Happy employees, happy customers. Quite simple actually. 60,000 unhappy staff, well, you do the math on how many unhappy customers can result from poor service.

Posted by: Happy EK crew

Amazes me to see no one is commenting on the salary increase the flying crew got!
Last week, Emirates flight attendants received a letter from their SVP cabin crew Kevin Griffiths stating that due to their hard work they will receive a BIG amount on top of their basic salaries (basic salary: AED 3700 to AED 5000) equivalent to AED 20 to AED 30!
Yes, 20 Dirhams to 30 Dirhams (depending on their grade) on their basic salaries which you can not buy a single top up telephone card!
Just read in another Arabian Business news that Emirates just close another sponsorship with France's PSG! Money for that they have!

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