The Emirates Group has reported its 31st consecutive year of profit as in the 2018/19 financial year it achieved a profit of AED 2.3 billion (US$631 million) – but it was a 44 per cent fall from 2017/18.
The Dubai-headquartered company also netted a record revenue in the period of more than AED 109 billion – up seven per cent on last year.
Emirates Airline posted a profit of AED 871 million, down 69 per cent from the previous financial year despite revenues increasing by six per cent to AED 97.9 billion (US$ 26.7 billion), supported by steady passenger and cargo performance.
Ground handling arm dnata made a record profit of AED 1.4 billion which includes AED 321 million gain from one-time sale of HRG stake and revenues increased by 10 per cent to AED 14.4 billion, reflecting further business expansion with international business now accounting for 70 per cent of revenue.
dnata expanded its global footprint in 2018/19 with the acquisition of Qantas catering in Australia and 121 Inflight catering business in the Americas, adds new facilities and service capabilities across its airport operations, catering, and travel services divisions.
Emirates Airline and Group chairman and chief executive, Sheikh Ahmed bin Saeed Al Maktoum said: “2018-19 has been tough, and our performance was not as strong as we would have liked. Higher oil prices and the strengthened US dollar eroded our earnings, even as competition intensified in our key markets.
“The uptick in global airfreight demand from the previous year appears to have gone into reverse gear, and we also saw travel demand weaken, particularly in our region, impacting both dnata and Emirates.
“Every business cycle is different, and we continue to work smart and hard to tackle the challenges and take advantage of opportunities.
“Our goal has always been to build a profitable, sustainable, and responsible business based in Dubai, and these principles continue to guide our decisions and investments. In 2018-19, Emirates and dnata delivered our 31st consecutive year of profit, recorded growth across the business, and invested in initiatives and infrastructure that will secure our future success.”
In February, Emirates announced a commitment for 40 Airbus A330-900s and 30 A350-900s worth $21.4 billion at list prices in an agreement signed with Airbus, to be delivered from 2021 and 2024 respectively. The airline will also receive 14 more A380 deliveries from 2019 until the end of 2021, taking its total A380 order book to 123 units.