Improved results due to capacity optimisation, efficiency initiatives and easing of strong US dollar
Emirates airline’s net profit more than doubled in its half-year performance results, up 111 percent to $452m, the carrier reported on Thursday.
Based on a 4 percent increase in passengers (29.2m) and overall capacity expansion of 2 percent, Emirates said the improved results were due to capacity optimisation and efficiency initiatives, easing of strong US dollar, and steady business growth.
Emirates Group, which owns the airline, reported a 77 percent increase in profit of $631 million (AED2.3bn) for the six-month period.
The group’s revenue increased by 6 percent, to $13.5bn (AED49.4bn), for the first six months of the financial year, up from $12.7bn (AED46.5bn) during the same period last year.
The group’s air services arm, dnata, reported a 20 percent increase in profit of $180m (AED659m). Emirates Group said dnata handled 330,317 aircraft (up 11%) and 1.5 million tonnes of cargo (up 25%).
Emirates Group chairman and CEO, Sheikh Ahmed, said, “Our margins continue to face strong downward pressure from increased competition, oil prices have risen, and we still face weak economic and uncertain political realities in many parts of the world.
“Yet, the group has improved revenue and profit performance. This speaks to the resilience of our business model, and the agility of our people.”
He said the easing of the strong US dollar against other major currencies helped the group’s profitability.
“We are also seeing the benefit from various initiatives across the company to enhance our capability and efficiency with new technologies and new ways of working,” he said
“Moving forward, we will continue to keep a careful eye on costs while investing to grow our business and provide our customers with world-class products and services.”
Emirates said the group’s employee headcount reduced by 3%, largely a result of “natural attrition together with a slower pace of recruitment”.
In July this year, Emirates announced a codeshare agreement with flydubai that will eventually share more than 200 destinations, with increased schedule alignment between the two Dubai-based carriers.
The agreement, which was this week increased to 45, also sees alignment of frequent flyer programmes – but the airlines will continue to operate independently, they said.
Emirates also announced it will extend its partnership with Qantas for a further five years, in tandem with joint network adjustments that will offer travellers more connectivity and flight choices to and from Australia and New Zealand.
Emirates airline, which operates a fleet of 264 aircraft, added 4 Airbus A380s, and 6 Boeing 777s during the six months, with a further nine scheduled to be delivered before the end of the financial year. It also retired 5 older aircraft from its fleet with further 4 to be returned by March 31 2018.