Emirates profits continue to rise

Emirates profits continue to rise

Airline generated more than US$470m net profits in six-month period

Airline generated more than US$470m net profits in six-month period

Emirates will add another 15 aircraft by March 2014
Emirates will add another 15 aircraft by March 2014

Emirates has continued to improve its financial position in 2013.

Releasing its results for the first half of its 2013-14 financial year, the Dubai-based airline posted a 2% rise in net profits, to AED1.7 billion (US$473 million), following an expansion of its fleet and route network.

This continued the strong performance experienced in the 2012-13 financial year, when the airline’s net profits surged 53% to a AED2.3bn, on revenues of AED73.1bn.

The airline added 17% more seat capacity in the six months to 30 September 2013, following the addition of nine new wide-body passenger aircraft – six Airbus A380s and three Boeing 777s. This drove a 15% increase in traffic, with the airline carrying 21.5m passengers in the first half of the year. As a result, Emirates’ revenues jumped 12% to AED 39.8bn.

“Emirates’ half-year scorecard shows a steady demand for our products and services,” said HH Sheikh Ahmed bin Saeed Al Maktoum, Emirates’ chairman & chief executive.

“Our capacity and route growth continue to match and meet passenger demand. High fuel prices, accounting for 39% of our expenditures, and the unfavourable currency exchange environment continue to eat into our profits. However, we remain steadfast in our vision to be the airline of choice for international air services, and we will invest in our people and our infrastructure, and work closely with our partners to bring this to fruition,” he added.

Emirates now expects to add 15 new aircraft before the end of the financial year on 31 March 2014. It now flies to 137 destinations in 77 countries, up from 126 cities in 74 countries last year. New destinations to be added in the remaining part of the fiscal year include Kabul, Kiev, Taipei and Boston.

The airline contributed more than three quarters of the Emirates Group’s total net profits in the six month period. Combined with the group’s other operations, including air services division dnata, the Emirates Group generated net profits of AED2.2bn in the first half, up 4% year-on-year, with revenues rising 13% to AED 42.3bn.

Mark Elliott
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Mark Elliott
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