Transport and Logistics ME
dnata Sees Steady Growth in 2018
Air Transport

dnata Sees Steady Growth in 2018

International operations accounted for 68% of revenue.

TLME News Service

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 AED7.0 billion ($1.9 billion), an 11% increase compared to AED6.3 billion ($1.7 billion) last year. This performance was underpinned by robust organic business growth, particularly in its international airport operations business.

Overall profit for dnata is up by 31% to AED 861 million ($235 million). This includes gains from a one-time transaction where dnata divested its 22% stake in the travel management company Hogg Robinson Group (HRG), during HRG’s acquisition by Amex Travel Business Group.

Without this one-time transaction, dnata profits will be down 18% compared to the same period last year.

dnata Doubles Operations in Canada

dnata’s airport operations remains the largest contributor to revenue with AED3.6 billion ($976 million), a 6% increase compared to the same period last year.  Across its operations, the number of aircraft handled by dnata increased by 6% to 350,052, and it handled 1.5 million tonnes of cargo, up 2%.

This reflects new customer contracts won across the network and strong business performance in key markets including USA, UK, UAE, Australia, and Italy.

In the first six months of 2018-19, dnata strengthened its Italian operations by increasing its share in Airport Handling SPA, a Milan-based ground handler, from 30% to 70%.

dnata also launched passenger handling operations at New York-JFK.

In the UAE, dnata acquired a majority stake in DUBZ, a baggage storage and delivery service company which expands its service offering to travellers.

dnata's travel division contributed AED1.7 billion ($456 million) to revenue, up 9% from the same period last year. The division’s underlying net sales increased by 6% to AED5.9 billion ($1.6 billion).

dnata Launches Passenger Services at JFK Airport

This performance was driven by strong results from the travel division’s UAE operations, revenue contributions from Destination Asia which dnata acquired in September 2017, and healthy business in UK which was also boosted by a stronger Pound Sterling against the US dollar.

At the end of September, dnata entered the German market with its acquisition of Tropo, a tour operator specialising in travel packages, last minute holidays and hotel reservations.

dnata’s flight catering operation, contributed AED 1.1 billion (US$ 311 million) to its total revenue, up 4%. The number of meals uplifted increased by 2% to 31.0 million meals for the first half of the financial year.

Downward pressure on yields, particularly in its Australian operations, was offset by a healthy performance from its Alpha Group operations as well as higher meal volumes through increased business in the UK, Romania, Czech Republic and Sharjah (UAE).

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