Emirates flies into 25th successive year of profit

May 10, 2013
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The group's 2012-13 annual report shows the company posted an US$845 million net profit, up 34 percent from last year/FILE
The group’s 2012-13 annual report shows the company posted an US$845 million net profit, up 34 percent from last year/FILE
NAIROBI, Kenya, May 10 – The Emirates Group has announced its 25th consecutive year of profit and company-wide growth ending the year in a strong position despite continuing high fuel prices and a weak global economic environment.

The group’s 2012-13 annual report shows the company posted an US$845 million net profit, up 34 percent from last year.

Even with external challenges, the group’s revenue reached US$21.1 billion, an increase of 17 percent over last year’s results. The group’s cash balance grew by 53 percent reaching US$7.3 billion.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group said; “Achieving our 25th consecutive year of profit in a financial year with our largest ever increase in capacity across the network is an achievement that speaks to the strength of our brands and our leadership.”

“Throughout the 2012-13 financial year the group has collectively invested over AED13.8 billion (US$ 3.8 billion) in new aircraft, products, services and handling facilities as well as the newly opened JW Marriott Marquis Hotel in Dubai. This investment has resulted in an increased customer base and a rise in global brand awareness.”

“Every dirham that we earn is strategically placed back into our business and it is this tenacious approach that has allowed the Group to maintain such strong and consistent profitability under challenging circumstances,” the Chief Executive Officer revealed.

Emirates continued with its growth plan and during the financial year saw the largest increase in capacity in the airline’s history receiving a staggering 34 new aircraft, the highest in any single year and an unprecedented achievement.

These aircraft were funded by raising more than US$7.8 billion, also a first, through a variety of financing structures. Other significant capacity increases include launching 10 new destinations across six continents, shipping more than two million tonnes of cargo for the first time and carrying an additional 5.4 million passengers over last year, the highest increase in a financial year.

Defying the industry trend, the 2012-13 financial year saw for the first time the company reporting a revenue of over AED 10 billion reaching AED 10.3 billion (US$2.8 billion) mark, an eight percent increase over last year.

Emirates Sky Cargo’s tonnage increased 16 per cent reaching a remarkable 2.1 million tonnes in a shrinking airfreight market, highlighting its ability to grow revenues against the industry norm.

This year, freight yield per Freight Tonne Kilometre decreased by six percent consequently contributing 15 percent of Emirates’ total transport revenue.

At the end of the financial year, Emirates Sky Cargo freighter fleet totalled 10 aircraft – eight on operating lease and two on wet lease.

Emirates’ Destination and Leisure Management including hotels saw revenue of US$125 million, an increase of 15 percent over last year.

The positive development was supported by the opening of the JW Marriott Marquis Hotel in Dubai, the world’s tallest hotel, at the end of 2012.

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