Emirates
Group Announces 25th Consecutive Year
of Profit
·
Group records AED
3.1 billion (US$ 845 million) net profit
·
Largest capacity
increase in airline’s history adding 34 new aircraft and
·
10 new
destinations
·
Emirates passes 39
million passenger milestone
·
Emirates profit
of AED 2.3 billion (US$ 622million)
·
•dnata
profit of AED 819 million (US$ 223 million)
Karachi
/ DUBAI, UAE – 9th May 2013 – The Emirates
Group has today announced it 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
financial year also ended with some very positive newly reached capacity
milestones throughout the business.
Released today in the Group’s 2012-13 Annual Report, the company
posted an AED 3.1 billion (US$ 845 million) net profit, up 34 per cent from
last year. Even with external
challenges, the Group’s revenue reached AED 77.5 billion (US$ 21.1 billion) an
increase of 17 per cent over last year’s results. The Group’s cash balance grew by 53 per cent
reaching a solid AED 27.0 billion (US$ 7.3 billion).
“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,” said His Highness (H.H) Sheikh
Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and
Group.
“Throughout the
2012-13 financial year the Group has collectively
invested over AED 13.8billion (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.”
Despite a
difficult operating environment, the Group continued to invest in and expand on
its employee base, increasing its overall staff count by 12
percent to 68,000.
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$
7.8billion, also a first, through a variety of financing structures. Overall capacity measured in Available Tonne
Kilometres (ATKMs) increased by 5.5 billion tonne-kilometres. Other significant
capacity increases include launching 10 new destinations across six
continents, shipping more than 2 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.
In the 2012-13
financial year Emirates’ fuel bill increased by 15 per cent over last
year to reach AED 27.9 billion (US$ 7.6 billion).
With total operating costs increasing by 16 per cent
compared to a revenue increase of 17 per cent over last year.
“Managing
volatile exchange rates, coupled with a persistently high fuel
bill accounting for 40 per cent of our total expenditures, has
required continued strong resolve," added Sheikh Ahmed. “Even
with these lingering challenges we continue to grow and remain
profitable despite the industry norms because we continue to rely on our
proven business model and understanding of the marketplace.”
“Staying the course,
our strategy for growth has reaped high benefits this past financial year,
which has been our strongest ever in relationship to capacity growth,"
said Sheikh Ahmed. "Emirates seat load factor
over the last three years has been 80 per cent despite our increase in capacity
by 44 per cent during the same period, showing the continued global demand
for our product. In addition
our capacity measured in terms of Available Tonne Kilometres (ATKMs),
which includes passenger and cargo capacity, crossed the 40 billion tonne-kilometres mark,
another first for Emirates.”
Highlighting its
sound financials and investor confidence, Emirates raised more than
AED 28.6 billion (US$ 7.8 billion) in new funding mainly to secure its on-going
fleet expansion, a record amount for the airline. This impressive total
included US$ 587.5 million financing for additional A380’s with a bond that
used the debt capital market in the U.S., a first for a non-U.S. airline in
years. Emirates also issued a 10-year amortised Sukuk for US$ 1 billion
and raised US$ 750 million with a 12-year amortised bond matched to the payment
cycle for the aircraft. It further includes more than AED 20 billion
(US$5.4 billion) raised through finance and operating leases.
“We move into the
new financial year with confidence and a clear vision of
where we are headed. We understand that succeeding in this industry requires
determination and we are unapologetic about our drive to be the
best,” added Sheikh Ahmed. “We strive to provide superior customer
experiences and as our customers’ expectations increase so do the
expectations we set for ourselves. With the help of
our 68,000 strong multicultural workforce we have no doubt that the
year ahead will again be more profitable than the last.”
Emirates revenue
reached a record high of AED 73.1 billion (US$ 19.9 billion)
growing by 17per cent when compared to the 2011-12 financial
year. Although the average price of jet fuel did not
increase over last year, it remains high and has impacted
Emirates’ bottom line with the airline’s profit at AED 2.3 billion
(US$ 622 million) representing an increase of 52per cent over
last year’s results.
Carrying a record
39.4 million passengers, an increase of 16 per cent,
Emirates logged a robust Passenger Seat Factor, at 80 per cent, remaining
consistent with last year’s results. With an increase in seat capacity-Available
Seat Kilometres (ASKMs) of 18 per cent the result highlights a strong
consumer desire to fly on Emirates’ state-of-the-art aircraft.
Passenger
yield remained steady with 30.5 fils (8.3 US cents) per
Revenue Passenger Kilometre (RPKM).
Revenue generated
from across Emirates’ six regions continues to be well balanced, with no region
contributing more than 30 per cent of overall revenues. East Asia and
Australasia remained the highest revenue contributing region with AED 20.9 billion
(US$ 5.7 billion) up 15 per cent from 2011-12. Europe, up 18
per cent to AED 20.1billion (US$ 5.5 billion) and the
Americas up 24 per cent to AED 8.3 billion (US$ 2.3 billion)
saw the most significant growth, reflecting new destinations as well
as increased frequency and capacity to these regions.
Across the rest
of the globe Emirates saw strong revenue increases from West Asia and the
Indian Ocean up 13 per cent to AED 8.0 billion (US$ 2.2 billion),
Gulf/Middle East up 13 percent to AED 7.1 billion (US$ 1.9 billion)
and Africa with AED 6.7 billion (US$1.8 billion) in revenue, up 10 per cent.
Emirates premium
seat factor remained strong despite the global financial uncertainty. Premium and overall seat factor for the
airline’s flagship A380
aircraft outperformed the network, highlighting the continued demand for the
product from passengers.
With a
further 198 aircraft on order worth over US$ 71 billion,
combined with the airline’s increasing worldwide passenger traffic, Emirates’
is set to continue to drive considerable economic growth in the countries that
it serves.
Forging ahead with
its intricately planned expansion, Emirates
received 34 new wide-body aircraft during the year
including 20 Boeing 777-300ERs, 10 Airbus A380s
and 4 Boeing 777LRFs compared with last year’s 22
aircraft. With an increased fleet, Emirates launched 10 new destinations
in 2012-13 including Ho Chi Minh City, Barcelona, Lisbon,
Erbil, Washington, DC, Adelaide, Lyon, Phuket,
Warsaw and Algiers.
Looking forward to 2013-14, Emirates has to
date announced four new routes; Haneda, Clark in the Philippines, Stockholm and
Milan to New York.
New A380
destinations for the airline in 2012-13 included; Amsterdam, Melbourne,
Singapore and Moscow. Bringing the total number of A380 destinations
to 21. In addition, a second A380 was deployed
on the existing Paris and New York routes, making both now
a double daily A380 service. Two of our aircraft to London
Heathrow were also upgraded to A380s, making all five daily
flights now A380s.
Focusing on our
customer touch points, Emirates opened three new dedicated
airport lounges during the year including Milan and the new First Class
and Business Class Concourse A
facilities at
Dubai Airport, which are among the largest in the world, bringing the total
number of Emirates lounges to 35. The
existing Business Class lounge in Dubai Airport’s Concourse C was also
refurbished to provide passengers with an enhanced experience.
Defying the
industry trend, the 2012-13 financial year has been a strong one for Emirates
SkyCargo who for the first time reported a revenue over AED 10 billion reaching
AED 10.3 billion (US$ 2.8 billion) mark, an 8 per cent increase over last year.
Emirates
SkyCargo’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 (FTKM) decreased by 6 per cent.
Contributing
15 per cent of Emirates’ total transport revenue Emirate SkyCargo
continues to play an integral role in the company’s expanding operations.
At the end of the
financial year, Emirates SkyCargo freighter fleet totalled 10 aircraft – eight on
operating lease and two on wet lease.
Emirates’ Destination
and Leisure Management including hotelssaw revenue of AED 460 million (US$ 125
million), an increase of 15 per cent 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.
In the 53 years of dnata,
2012-13 has been its most successful yet, coming on the back of very
strong results in 2011-12. With an increase of 15 per cent over last
year, dnata grew its revenue to AED 6.6 billion (US$ 1.8 billion).
Overall dnata was
able to outperform last year’s record to AED819million (US$ 223 million). More
than 46 per cent of this revenue comes from dnata's growing international
business. This year’s figures take into account the full year results of
Travel Republic and newly set-up catering related Alpha LSG Joint
Venture (JV) in the UK between dnata and LSG Skychefs. The JV is only
reported at equity accounting levels and last year’s figures have been
adjusted for comparative purposes accordingly.
dnata's international growth continued with
the addition of several new companies in its portfolio including the
acquisition of En Route International Ltd, a supplier for bakery and packaged
food solutions, a partnership with inflight caterer the Newrest Group and
Mentor Africa, and the development of an expansive 20-acre cargo logistics centre
named ‘dnata City’ at London Heathrow Airport to improve cargo services.
Revenue
from dnata’s airport operations increased by 7 per cent reaching AED 2.5 billion
(US$674 million) making it the largest revenue stream.
The positive development is primarily driven
by strong volume growth in Dubai and in a number
of dnata’s other global operations.
Revenue
from dnata’s inflight catering, accounted for AED 1.4 billion
(US$ 383million) of its total revenue up 16 per cent,
uplifting nearly 29 million meals during the year.
dnata’s cargo
handling division also witnessed growth with revenue increasing by 7 per
cent to AED 1.1 billion (US$ 293 million) on account
of rapidly increasing business volumes at Dubai World
Central Airport and by expanding handling activities at Dubai
International Airport.
For the
year, dnata’s operating costs increased by 17 per cent
to AED 5.8 billion (US$ 1.6billion). This growth is also
influenced by the first full year integration of Travel
Republic.
As of 31st March
2013, the Group employed 68,000 staff across more than 80
companies, representing over 160 different nationalities. The full
2012-13 Annual Report of the Emirates Group – comprising Emirates, dnata and
their subsidiaries – is available at: www.theemiratesgroup.com/annualreport
-ENDS-
Photo Captions:
1)
His Highness
(H.H) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates
Airline and Group
2)
Concourse A, home
of the Emirates A380, is the world first dedicated A380 hub
3)
Concourse A, home
of the Emirates A380, at sunset with the iconic Dubai skyline in the background
4) dnata’s
ground handling experts at Dubai International Airport, part of a
20,000-employee strong global workforce
5)
dnata’s 20,000 employees in 38 countries worldwide unite around a common
theme of ‘delighting customers’
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