By Ed Attwood
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.For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
...but ZERO profit share to employees...
It is a very sad day for all Emirates Airline employees. Not a single dirham was shared with the men and woman working for the airline. Huge profits and nothing was given back to the staff. Zero profit share.
I am guessing Emirates is part of paying off Dubai Inc's debt??
Will the cabin crew finally get the long waited promised bonuses???
Emirates makes money because of its staff but forgets to reward them unlike FlyDubai and Etihad. Sad
I totally agree. Its the people thats the source of the company's success but always been taken for granted.
Press release always seem to be so lucrative and rewarding but not a single reward thats given back to its staff. Its all blah blah blah
Emirates profit release doesn't mean a thing to its more than 68,000 people who in d end didn't get a single dirham share.
Two consecutive year of no bonus seem to be too unfair when all you read in the paper is of company's soaring revenue and money generated.
Emirates crew, do not flatter yourselves. You should get a bonus if you have worked HARD. Most of you are lazy and do the BARE MINIMUM if you could. Passengers fly EK for the convenience EK provides NOT because of the cabin service which is sometimes good, mostly average to awful.
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!!!
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!
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.