Emirates reports profit recovery
Climbing back from an 82% plunge in 2016/17, Emirates profits soared 124%, to $762m, for the financial year ending 31st March 2018 on revenue of $25.2bn (+9%).
Emirates profits soared 124%, to $762m, for the financial year ending 31st March 2018 on revenue of $25.2bn (+9%). This follows an 82% drop in profits for the previous year. Group profits tripled, to $1.1bn, on record sales of $27.2bn.
The group’s dnata ground and cargo handling arm turned in its highest-ever profit ($359m) on record sales of $3.6bn.
Emirates announced two significant commitments for new aircraft during the year: a $15.1bn agreement for 40 Boeing 787-10 Dreamliners which will be delivered from 2022, and a $16bn agreement for 36 additional A380 aircraft, including 16 options.
dnata’s key investments during the year included: acquisition of AirLogistix USA, marking its entry into the US cargo market; expansion of cargo handling capabilities with new warehouses and equipment at London Gatwick, Amsterdam-Schiphol, and Adelaide; new catering facilities in Dublin and Melbourne; and new marhaba lounges in Karachi and Melbourne.
Emirates’ total passenger and cargo capacity crossed the 61bn mark, to 61.4bn ATKMs at the end of 2017-18, cementing the airline's position as the world’s largest international carrier. The airline moderately increased capacity during the year (+2%), while keeping the focus on yield improvement.
Emirates received 17 new aircraft — eight A380s and nine Boeing 777-300ERs. At the same time, eight older aircraft were phased out, bringing the total fleet count to 268 at the end of March. This fleet roll-over keeps average fleet age at 5.7 years.
In the airfreight market, Emirates’ cargo division reported revenue of $3.4bn (+17%), while tonnage carried increased slightly (+2%), to 2.6m tonnes. Freight yield per Freight Tonne Kilometre increased by 14%, reflecting a very positive market environment and the weakening of the USD against major currencies.