The Emirates Group on Thursday announced that revenue reached AED46.1 billion ($12.6 billion) for the first six months of its 2015-16 financial year, down 2.3 percent from the same period last year, reflecting the impact of the strong US dollar against major currencies.
The Group, which comprises the international airline and air services provider dnata, said in a statement that it recorded one of its best half-year profit performances ever, with net profit rising to AED3.7 billion ($1 billion), up 65 percent over the year earlier result.
It added that its cash position on September 30 was at AED14.8 billion compared to AED20 billion six months earlier due to ongoing investments mainly into new aircraft, airline related infrastructure projects, and business acquisitions.
Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group, said: “Our top-line figures were hit hard by the strong US dollar against other major currencies. The currency exchange situation, combined with ongoing regional conflict and weak economic outlook in many parts of the world, dampened the positive impact of lower fuel prices during the first half of our 2015-16 financial year.
“Emirates also made the decision to pass on savings from the lower fuel prices to our customers by cancelling passenger fuel surcharges, and lowering fares across the network.”
He added: “That the Group is reporting one of its most profitable first half-year performances ever, speaks to the strength of our underlying business. In first six months of this year, Emirates and dnata grew in terms of capacity, capability and global reach – organically, and for dnata through strategic acquisitions as well.
“Looking ahead, we will continue to build on our core strengths by investing in new ways to improve efficiencies and deliver the best customer outcomes. At the same time, we will keep an eye out for strategic growth opportunities, and stay agile so that we can respond effectively to external challenges.”
In the past six months, the Group continued to develop and expand its employee base, increasing its overall staff count by 4 percent to over 87,000.
In the first half of the 2015-16 financial year, Emirates Airline’s net profit was AED3.1 billion, up 65 percent from the same period last year, partly due to the impact of lower fuel prices.
On average, fuel prices were 41 percent lower compared to the same period last year. Fuel remained the largest component of the airline’s cost, accounting for 28 percent of operating costs compared with 38 percent in the first six months of last year.
Capacity measured in Available Seat Kilometres (ASKM), grew by 16 percent, while passenger traffic carried measured in Revenue Passenger Kilometres (RPKM) was up 11 percent, the statement said.
It added that Emirates carried 25.7 million passengers between April and the end of September, up 10 percent from the same period last year. The volume of cargo uplifted was up by 10 percent to reach 1.25 million tonnes.
The statement said that dnata continued to grow its international business footprint, investing in infrastructure and operations which now span 74 countries. In the first half of 2015-16, dnata’s international operations accounted for over 67 percent of its total revenue.
dnata’s revenue, including other operating income, was AED5.2 billion, a 27 percent increase while overall profit increased by 64 percent to AED557 million.
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