By Courtney Trenwith
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.”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.
these actions make us second guess our loyalty to a brand
This reminds me of Emaar lol.. When they made all that money from the local real estate boom they never shared any of their profits with their shareholders. Nothing new here. Reports profits and losses but never share profits with anyone.
Bonus is discretionary....
And now I know why the staff won't smile as much on my next flight... Shame on you Emirates. Your staff deserve better.
MMM, I doubt you ever think of staff payout/s when you fly on Emirates, so please don't link your brand loyalty to this topic.
In terms of the headlines and report of this particular article, it shows your absolute ignorance on the way/process Emirates sets its profit targets that are linked to staff bonuses. They don't have to defend or even explain themselves!
Emirates is one of the few organizations that is transparent on this aspect. They declare and share the profit target at the beginning of the financial year so all staff are aware that if they hit that set figure at the end of the financial year, only then will they be entitled to a bonus.
So please do not sensationalize things that don't need to be!
All sorts of problems with this article:
Firstly get your years right - the AED 3.1bn profit was announced for 2012/2013 ie: the financial year ended 31 March 2013. Not 2011/12 which should be your comparison year.
I am not sure why you are using figures from 2009/2010; and your figures are wrong here - Group Profit was AED4.2bn of which the airline made AED3.5bn.
AED 3.1 bn in 2012/2013 was the Group profit. The airline made AED 2.3 bn and DNATA AED0.8bn. Your story says "At the same time, Emirates Group â€“ of which the airline is a subsidiary - posted a 34 percent increase in profits to $845m."
Then to reinforce the story look at the first half of 2012/2013 where the Group announced a Profit of AED2.1 bn - well on the way to the target of AED 3.5 bn. So the question that you should be asking is what happened in the second half of the year with a profit for the six months that was less than 50% of the first half year.
I am sorry but the error in this article are embarrassing.
The Only one sthat get good benefits from staff are the ones based in Dubai!!! The ones working in other countries they don't benefit of anything they have them like second class staff!
That's what they say they never listen to what there staff are asking of!
Amazing how the bonus disappeared right around the same time the Airbus A380's began to show up!
generous.....don't get carried away there...
Very poorly researched and written article. The recent results were for 2012/13 not 2011/12