Emirates Announces Half-Year Result with Impacted Profitability
The Emirates Group has announced its half-year results for 2018-19. The Group saw steady revenue growth compared to the same period last year.
However, profits were impacted by the significant rise in oil prices, and unfavourable currency movements in certain markets, amidst other challenges for the airline and travel industry.
The Emirates Group revenue was AED 54.4 billion (US$ 14.8 billion) for the first six months of its 2018-19 financial year, up 10% from AED 49.4 billion (US$ 13.5 billion) in the same period last year.
Profitability was down 53% compared to the same period last year, with the Group reporting a 2018-19 half-year net profit of AED 1.1 billion (US$ 296 million) primarily due to increase in fuel prices of 37% compared to the same period last year, as well as the negative impact of currencies in certain markets.
The Group’s cash position on 30th September 2018 was at AED 21.5 billion (US$ 5.9 billion), compared to AED 25.4 billion (US$ 6.9 billion) as at 31st March 2018.
During the first six months of 2018-19, Emirates received 8 wide-body aircraft – 3 Airbus A380s, and 5 Boeing 777s, with 5 more new aircraft scheduled to be delivered before the end of the financial year. It also retired 7 older aircraft with further 4 to be returned by 31 March 2019.
In the first six months of its financial year, Emirates launched new passenger services to Stansted (UK) and Santiago (Chile). It also introduced a new linked service from Dubai via Bali to Auckland. As of 30 September, Emirates’ global network spanned 161 destinations in 85 countries. Its fleet stood at 269 aircraft including freighters.
Overall capacity during the first 6 months of the year increased a modest 3% to 31.8 billion Available Tonne Kilometres (ATKM). Capacity measured in Available Seat Kilometres (ASKM), grew by 4%, while passenger traffic measured in Revenue Passenger Kilometres (RPKM) was up 6% with average Passenger Load Factor rising to 78.8%, compared with last year’s 77.2%.
Emirates carried 30.1 million passengers between 1 April and 30 September 2018, up 3% from the same period last year. The volume of cargo uplifted at 1.3 million tonnes is largely unchanged while yield improved by a healthy 11%.
dnata saw steady growth across its global businesses which now span over 35 countries. In the first half of 2018-19, dnata’s international operations accounted for over 68% of its revenue.
dnata’s revenue, including other operating income, is AED 7.0 billion (US$ 1.9 billion), an 11% increase compared to AED 6.3 billion (US$ 1.7 billion) last year. Overall profit for dnata is up by 31% to AED 861 million (US$ 235 million).