Emirates Group announces half yearly profits

The Emirates Group posted a Dhs2.1bn ($ 575m) net profit for the first six months of its current fiscal year ending 30th September 2012, up 68% from Dhs1.3bn ($343m) from 30th September 2011.

Despite fundamental challenges, the Group's revenue and other operating income rose to Dhs38.2bn ($10.4bn) an increase of 16% over the last year's results. This constitutes the first time in the Group's history that revenue surpassed the $ 10bn mark in a six month period. The Group's cash position on 30th September 2012 remained strong at Dhs15.2bn ($4.1bn), compared to Dhs17.6bn ($4.8bn) as of March end 2012. The Dhs2.4bn difference in the cash balance is primarily resulting from a Dhs2.0bn Sukuk bond repayment in June 2012.

"The Emirates Group half-year performance is the result of hard work and our drive to stay on course and continue to grow despite the precarious marketplace," said His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group. "We have continued to invest in the infrastructure of both Emirates and dnata and it continues to pay off."

Even with a challenging operating environment, the Group continued to invest in and expand on its employee base, increasing its overall staff count by more than 8% in just six months to nearly 68,000.

During the first six months of the fiscal year Emirates received 13 wide-body aircraft, including two A380s and ten Boeing 777s and one freighter, with more than 15 new aircraft scheduled to be delivered before the end of the financial year (31 March 2013). As the fleet increased, Emirates further invested in its network by adding five new destinations that have joined the 10 new routes added since 30 September 2011, for a total of 15.

On its strong upward trajectory, Emirates continues to be one of the fastest growing airlines in the world. In spite of unstable global economic, geopolitical and environmental conditions Emirates continues to make a profit. In the first half of the 2012-13 fiscal year, Emirates net profit is Dhs1.7bn ($464m) up 104% from Dhs836m ($228m).

"Emirates remained focused on its growth and global expansion despite on-going fluctuating exchange rates and ever lingering high fuel prices which accounted for 39% of our expenditures, down 2% age points from last year," said HH Sheikh Ahmed. "The instability in the market over the past six months has put Emirates to the test, and once again we have risen to the challenge, our results speak for themselves."

Equipped with the world's largest fleet of A380s and the largest fleet of Boeing 777s Emirates continues its broad, global expansion now flying to 126 destinations up from 114 last year to 74 countries compared with 67 last year. The airline has launched five new destinations since 1st April 2012 including Ho Chi Minh City, Barcelona, Lisbon, Erbil and Washington, D.C. Additional new routes to be added during the second half of the fiscal year include Adelaide, which launched 1st November and the upcoming routes of Lyon, Phuket, Warsaw and Algiers.

New A380 destinations for the airline for the first six months of fiscal year 2012-13 included Tokyo and Amsterdam bringing the total number of A380 destinations to 19.

In the first-half of its financial year 2012-13, Emirates posted strong business growth, both in terms of capacity on offer and traffic carried, performance that has been in sharp contrast to the current trend seen across the aviation industry. Capacity measured in Available Seat Kilometres (ASKM), grew by 17.3%, whilst passenger traffic carried measured in Revenue Passenger Kilometres (RPKM) was up 17.8% with Passenger Seat Factor sustained at a high level, averaging 80%, slightly above last year's 79%. Emirates carried 18.7m passengers since 1st April 2012, up 15.4% for the same period last year. The volume of cargo uplifted was up by more than 16%, a significant growth against the market trend.

Emirates revenue, including other operating income, of Dhs35.4bn ($9.7bn) was higher by 17% compared with Dhs30.2bn ($8.2bn) recorded last year, largely reflecting a strong passenger yield based on constant high fuel prices.

In the summer of 2012, the financial community continued to show confidence in Emirates as the airline successfully raised financing for four A380's using the debt capital market in the United States - a first for a non-US airline for many years.

dnata continues to grow internationally and reinvest in the global business infrastructure. dnata's revenue including other operating income is Dhs3.9bn ($1.1bn), 9% higher compared to Dhs3.6bn ($968m) last year. This is the first time in dnata's 53 year history the company achieved $ 1bn in revenues in six months.

During the year, dnata's operating costs increased by 11% to Dhs3.4bn ($940m) due to increased costs of doing business in the global market place. Overall profit for dnata is slightly down 4% at Dhs407m ($111m), a positive performance set against the significant competition challenges within the aviation industry.

Revenue from dnata's Travel Services operation contributed most significantly to the organization's revenue through the first time integration of Travel Republic for the first six months reporting period as it was acquired in December 2011.

dnata's cargo handling division also witnessed upward growth with revenues increasing by 5% to Dhs524m ($143m) on account of increased tonnage at Dubai International Airport and Singapore Changi Airport which rose by 5% to 791,151 tonnes.

dnata's in-flight catering operation, accounted for Dhs1.4bn ($377m) of its total revenue. The number of meals uplifted at 27.5m meals for the first half of the fiscal year, down slightly, at 2.4% compared to last year.

Revenue from dnata's airport operations increased by 4% reaching Dhs1.2bn ($324m). The increase is due primarily to increased volumes at Dubai and Singapore airports. The number of aircraft handled by dnata also increased to 130,684, up 5.6%.