Emirates group profits up 65% to $1bn in six months …Strong US dollar against currencies dampens revenues

 

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The Emirates Group in its 2015-16 financial year record released during the week, said it marked one of its best half-year profit performances ever, with net profit rising to $1 billion, up 65 percent over the last year’s results.

Although, it said its revenue reached $ 12.6 billion for the first six months of its, down 2.3 percent from $ 12.9 billion during the same period last year, it added that the difference reflects the impact of the strong US dollar against major currencies.

The Group’s cash position on 30th September 2015 was at $4.0 billion, compared to $ 5.5 billion as at 31st March 2015.

This, according to the airline, is due to ongoing investments mainly into new aircraft, airline related infrastructure projects, and business acquisitions.

Commenting on the results, 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.

“However, we made a calculated decision not to hedge our fuel purchases, which paid off as fuel prices continued to soften. Emirates also made the decision to pass on savings from the lower fuel prices to our customers by cutting passenger fuel surcharges, and lowering fares across the network.

 “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”, he said.

In the past six months, the Group continued to develop and expand its employee base, increasing its overall staff count by 4 percet to over 87,000 compared with 31st March 2015.

During the first six months of the financial year Emirates received 13 wide-body aircraft – 8 A380s, and 5 Boeing 777s.

It also retired four older aircraft, resulting in a net increase of nine new aircraft for its fleet, with 16 more new aircraft scheduled to be delivered before the end of the financial year (31st March 2016).

Emirates also expanded its global route network by launching services to four new destinations – Bali, Multan, Orlando, and Mashhad.

As of 30 September, Emirates’ global network spanned 147 destinations in 79 countries. Bologna came online on 3rd November, and Panama City will be launched on 1st February 2016.

Operating the world’s largest fleet of A380s and the largest fleet of Boeing 777s, Emirates continues to provide ever better connections for its customers across the globe with just one stop in Dubai.

In the first half of the 2015-16 financial year, Emirates net profit hit $849 million, up 65% from the same period last year.

This performance reflects the impact of lower fuel prices, and also the airline’s continued ability to grow passenger demand in line with significant capacity growth, despite external challenges such as continued regional unrest and economic malaise in many regions, and increased competition adding downward pressure on yields.

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