What’s New

- Group records AED 2.3 billion (US$ 629 million) net profit

- Emirates reaches 34 million passenger milestone

- 11 new destinations and 22 new aircraft added to Emirates operations

- dnata achieves record profit of AED 808 million (US$ 220 million)

The Emirates Group has today announced its 24th consecutive year of profit and companywide growth amidst unprecedented economic pressure and record high fuel prices.

Released today in the Group’s 2011-12 Annual Report the company posted a AED 2.3 billion (US$ 629 million) net profit, with dnata marking its highest ever profit in 52 years of operation. Despite fundamental challenges, the Group’s revenue reached a record high, climbing to AED 67.4 billion (US$ 18.4 billion) an increase of 17.8 percent on last year’s results. The Group’s cash balance grew by 9.5 percent reaching a strong AED 17.6 billion (US$ 4.8 billion).

During the year Emirates received a staggering 22 new aircraft, its highest in any single year, funded by a wide variety of financing structures. With an increased fleet, Emirates further invested in its network by adding 11 new destinations and increasing capacity to 34 cities, a record for the airline.

In the 2011-12 financial year Emirates’ fuel bill increased by 44.4 percent over last year to reach AED 24.3 billion (US$ 6.6 billion). With operating costs increasing by 24 percent compared to a revenue increase of 16.2 percent over last year, Emirates bore the brunt of the crippling cost of fuel for nearly one year, before reluctantly introducing a fuel surcharge on all tickets.

In addition to the cost of fuel Emirates had an operationally challenging year with the political unrest across the Middle East and North Africa affecting flight schedules. By keeping a tight focus on operations and modifying capacity and schedules Emirates was able to maintain profitability.

Emirates

Emirates revenue reached a record high of AED 62.3 billion (US$ 17 billion) growing by 14.9 percent when compared to the 2010-11 financial year. Despite this strong revenue growth, the stifling cost of jet fuel impacted Emirates’ bottom line with the airline’s profit sitting significantly lower than the previous year at AED 1.5 billion (US$ 409 million) representing a decrease of 72.1 percent over last year’s record results.  

Carrying a record 34 million passengers, an increase of 8 percent, Emirates logged a robust Passenger Seat Factor, at 80.0 percent, remaining consistent with last year’s results. With an increase in seat capacity - Available Seat Kilometres (ASKMs) of 9.8 percent the result highlights a strong consumer desire to fly on Emirates’ state-of-the-art aircraft.

Passenger yield increased by 7.8 percent to 30.5 fils (8.3 US cents) per Revenue Passenger Kilometre (RPKM), up from 28.3 fils (7.7 US cents) in 2010-11.

In contrast to the global economic environment Emirates witnessed an upward trend in its premium class seat factor for a second year, up 1.9 percentage points from 2010-11. Premium and overall seat factor for the airline’s flagship A380 aircraft sat even higher, highlighting a continued demand in the product from passengers.

Emirates SkyCargo

Bucking the industry trend, the 2011-12 financial year has been a strong one for Emirates SkyCargo with revenues of AED 9.5 billion (US$ 2.6 billion) an 8.4 percent increase on last year on account of an increase in freight tonnage and freight yield per Freight Tonne Kilometre (FTKM) which rose by 5.4 percent.

With the bulk of the cargo industry reporting downward tonnage, Emirates SkyCargo’s tonnage increase of 1.7 percent reaching 1,796 thousand tonnes showcases its persistence to grow revenues against the industry norm.

Contributing 16.2 percent of Emirates’ total transport revenue Emirate SkyCargo continues to play an integral role in the company’s expanding operations.

Destination and Leisure Management (D&LM) division

Emirates’ Destination and Leisure Management (D&LM) division saw revenue of AED 245 million (US$ 66.8 million) during the year, an increase of 8.4 percent over last year.

dnata

In the 52 years of dnata, 2011-12 has been its most successful yet. With an increase of 58.9 percent over last year, dnata grew its revenue to AED 7 billion (US$ 1.9 billion). Overall profit for dnata also reached its highest ever point at AED 808 million (US$ 220 million).

Source: Emirates