The Emirates Group has announced a 65% increase in profit after tax for the first six months of its 2015/2016 financial year.
The Emirates Group made profit after tax of $1 billion or N200 billion from total revenues of $12.6 billion (N2.52 trillion) in just six months ending September 2015 which was slightly below the $12.9 billion (N2.6 trillion) made in the previous six months of 2014/2015 financial year ending September 2014.
The Group says the improved profitability was due to a 10% increase in the number of passengers it carried for the period to 25.7 million, expansion in the number of airline in its fleet by nine and a 41% drop in the cost of fuel, which make up about 28% of its operating costs.
“That the Group is reporting one of its most profitable first half-year performances ever, speaks to the strength of our underlying business” His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said.
He explained that the Emirates Group “made a calculated decision not to hedge our fuel purchases, which paid off as fuel prices continued to soften. Emirates also made the decision to pass on savings from the lower fuel prices to our customers by cutting passenger fuel surcharges, and lowering fares across the network.”
This paid off in increased passenger traffic and the improved profitability in the Emirates Group’s operations.
Al Maktoum explained that the group’s profitability would have been higher if not for the fact that top-line figures were hit hard by the strong US dollar against other major currencies.
“The currency exchange situation, combined with ongoing regional conflict and weak economic outlook in many parts of the world, dampened the positive impact of lower fuel prices during the first half of our 2015-16 financial year” he explained.
The Group’s had cash in the bank amounted to $4 billion (N800 billion) as of 30th September 2015, which is $1.5 billion (N300 billion) less cash that what the $ 5.5 billion (N1.1 trillion) the group had as at 31st March 2015.
Al Maktoum said the lower cash “is due to ongoing investments mainly into new aircraft, airline related infrastructure projects and business acquisitions.”
He expressed optimism that the group will continue to do well for the remaining part of the year.
“Looking ahead, we will continue to build on our core strengths by investing in new ways to improve efficiencies and deliver the best customer outcomes. At the same time, we will keep an eye out for strategic growth opportunities, and stay agile so that we can respond effectively to external challenges” he said.
The Emirates Group has spread its wings into every aspect of travel and tourism to become a leading global corporation in its field.
With one of the youngest fleets in the sky and more than 500 awards for excellence worldwide, Emirates airline is one of two key divisions in the group.
The other is dnata, which provides services in ground handling, cargo, travel, IT solutions and flight catering. Established in 1959, today, dnata is the world’s fourth largest combined air services provider with a global footprint extending to almost 40 countries.
Propelled forward by their united strength, the two have evolved at a phenomenal rate to establish the Emirates Group as an immense organisation, spanning a portfolio of more than 50 brands and employing over 62,000 people.
