Emirates Group Announces US$320 Million Half-Yearly Profit
The Emirates Group today announced its half-year results for its 2019-20 financial year.
Group revenue was US$ 14.5 billion for the first six months of 2019-20, down 2% from US$ 14.8 billion during the same period last year.
This slight revenue decline was mainly due to planned capacity reductions during the 45-day Southern Runway closure at Dubai International airport (DXB), and unfavourable currency movements in Europe, Australia, South Africa, India, and Pakistan.
His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group said: “The Emirates Group delivered a steady and positive performance in the first half of 2019-20, by adapting our strategies to navigate the tough trading conditions and social-political uncertainty in many markets around the world.
“Both Emirates and dnata worked hard to minimise the impact of the planned runway renovations at DXB on our business and on our customers. We also kept a tight rein on controllable costs and continued to drive efficiency improvement, while ensuring that our resources were deployed nimbly to capitalise on areas of opportunity.
“The lower fuel cost was a welcome respite as we saw our fuel bill drop by AED 2.0 billion compared to the same period last year. However, unfavourable currency movements wiped off approximately AED 1.2 billion from our profits.
“The global outlook is difficult to predict, but we expect the airline and travel industry to continue facing headwinds over the next six months with stiff competition adding downward pressure on margins.
“As a Group we remain focussed on developing our business, and we will continue to invest in new capabilities that empower our people, and enable us to offer even better products, services, and experiences for our customers.”
Profitability was up 8% compared to the same period last year, with the Group reporting a 2019-20 half-year net profit of US$ 320 million. The profit improvement was primarily due to the decline in fuel prices of 9% compared to the same period last year, however the gain from lower fuel costs were partially offset by negative currency movements.
The Group’s cash position on 30th September 2019 stood at US$ 6.3 billion, compared to US$ 6.0 billion as at 31st March 2019.
The Emirates Group’s employee base remained unchanged compared to 31 March 2019, at an overall average staff count of 105,315.
During the first six months of 2019-20, Emirates received 3 Airbus A380s, with 3 more new aircraft scheduled to be delivered before the end of the 2019-20 financial year. It also retired 6 older aircraft from its fleet with a further 2 to be returned by 31 March 2020.
In the first half of the 2019-20 financial year, Emirates net profit was US$ 235 million, up 282%, compared to last year.
dnata continued to strengthen its global capabilities in ground handling, catering and travel services, with operations spanning over 35 countries.
In the first half of 2019-20, dnata’s international operations accounted for over 72% of its revenue, compared to 68% during the same period last year.
dnata’s revenue, including other operating income, was US$ 2.0 billion, a 5% increase compared to US$ 1.9 billion last year.