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.”