By Shane McGinley
Dubai airline sees net profit of $1.5bn for 2010, has no plans to IPO this year to fund expansion
Emirates Airline, the Arab world’s largest carrier, Tuesday posted a 52 percent rise in net profit in 2010, driven by a surge in passenger numbers and cargo traffic.
Dubai’s flag carrier made a net profit of $1.5bn for the year, Emirates Group said at a press event in the emirate, despite widespread regional turmoil.
Revenue for the airline jumped 25 percent to reach $14.8bn, the state-backed company said.
The wider Emirates Group, which includes travel unit dnata and Emirates SkyCargo, posted a net profit of $1.6bn for 2010, an increase of 42.9 percent on the previous year.
Net profit for travel subsidiary dnata was $152.5m for the year.
“[Despite] challenges in the form of political instability and shocking natural disasters we have managed…to produce our best ever result,” said Emirates chairman Sheikh Ahmed bin Saeed Al Maktoum.
The group would have seen a further $1bn in profit had rising oil prices not taken a toll on earnings, Sheikh Ahmed said. Fuel accounts for 43 percent of Emirates Airline’s costs.
The carrier took delivery of eight new aircraft during the year, including seven of its flagship A380s. The airline has a further $13.4bn worth of aircraft on order.
Emirates dropped plans for a bond to finance expansion after political unrest in the Middle East made rates more expensive, and Sheikh Ahmed said the company would not look to issue an initial public offering in the next 18 months.
“With regards to the IPO, there is no need for anything
to happen this year or next year. That is all I can say about it at the
moment,” he said.
The airline said it carried 31.4 million passengers in 2010 and its passenger load factor stood at 80 percent for the 12 month period.
What does the political unrest in the region have to do with the 2010 results? Until January 2011; there was no political unrest in the region; with no impact on the 2010 results. Let's wait until this time next year before we can start saying what impact it has had.
contrary to their press release about "no fare hikes in last few days" just checked out flight to UK today and it was same dates as 1 week ago when I checked - now 600dhs more!! righto.....
Great results -congratulations ! lets hope other Companies in Dubai will follow their example. Good to see some positive news on Dubai for a change.
Ticket price does not work the way you thing.Early birds get a cheaper fare.As and when seat gets booked and ticketed the prices of remaining seat increases.Its the very old logic.More Supply less the price and Vice Versa.And that is why last fews Economy tickets are sold at higher price than premium class ticket (during initial stages).
If you further delay by 2-3 days then prices will again go higher.Airline will only decrease the price only if it feels that remaining seats cannot be filled in remaining days.But then it is taken care of by overbooking and denying last 2-3 customers by rewarding then a free return ticket.
Hope it clarifies
you are thinking calendar year Jon. These results are for financial year Apr to Mar. Most companies file for Apr to Mar. Which means it did have an impact for one quarter.
The financial year for Emirates finishes be end of MAR and the political unrest took a place in the last quarter of the financial year! In the Airlines industry this time is enough to make or break an Airlineâ€¦â€¦So way to go Emirates for a JOB WELL DONE!
with all due respect XYZ, I have checked out prices for the whole month - they have all gone up by same amount - so NO the prices have been increased CONTRARY to their press release - check it out if you dont believe me - I dont have a problem in the fact of supply / demand paying more but this is cart blanch increase - dont PR one thing then implement the opposite...