Emirates airlines posts stellar financial performance: Here’s how it did it
The Emirates Group today announced its 30th consecutive year of profit and steady business expansion.
Emirates Group posted a profit of $1.1 billion for the financial year ended 31 March 2018, up 67% from last year.
The Group’s revenue reached $ 27.9.billion, an increase of 8% over last year’s results, employing a total workforce of 103,363 people.
In 2017-18, the Group collectively invested $2.5 billion in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives.
Emirates received 17 new aircraft, after last year’s record number during a financial year, comprising eight A380s and nine Boeing 777-300ERs, keeping Emirates’ average fleet age at a youthful 5.7 years.
During the year, Emirates launched two new passenger destinations: Phnom Penh (Cambodia) and Zagreb (Croatia).
It also added flight capacity to 15 existing destinations, offering customers more choice of flight timings and onward connections.
Emirates also grew its global connectivity and customer proposition through strategic partnerships (flydubai and Cargolux, and extended its partnership with Qantas until 2023).
Emirates managed to increase its revenue to $25.2 billion.
The airline successfully managed strong competitive pressure across all markets and increased its profit to $ 762 million, 124% over last year’s results..
Emirates carried a record 58.5 million passengers (up 4%) and achieved a Passenger Seat Factor of 77.5%.
Revenue generated from across Emirates’ six regions continues to be well balanced, with no region contributing more than 30% of overall revenues.
Saj Ahmad, Chief Analyst – StrategicAero Research said:
“In reporting a 124% increase in profitability over the same period a year ago, Emirates has rode the wave of increasing passenger traffic, while benefitting from a continued restructuring effort aimed at suppressing costs and maximising the efficiencies and economies of scale of its huge dual Airbus A380-800 and Boeing 777 fleets.
Emirates cash balance has soared to almost $7bn – much of this will be earmarked for continued development of its new cabin products as well as delivery payments for new airplanes, expanding its 787 fleet, the first of which arrives in just four years from now.”
Ahmad added: “The rise in revenue by 9% to $25.2bn is married to an increase in seat factors to 77.% while passenger numbers went up to 58.5m where Emirates has capitalised on returning capacity to high yield, money-spinning markets like the USA after the laptop ban as well as targeting more traffic connections with flydubai.”
Through the year, Emirates introduced product and service improvements on board and on the ground.
Key highlights include the launch of fully-enclosed suites in First Class together with refreshed Business Class and Economy Class cabins and wider Business Class seats arranged in a 2-2-2 layout.
On the ground, Emirates completed a $11 million makeover of its lounges in Dubai airport.
Ahmad added: “The closer cooperation with flydubai, which will eventually see the smaller Dubai carrier integrate into Emirates’ Terminal Three will help to slash minimum connection times and boost passenger numbers for both entities – particularly because there is very little in the way of overlap on their networks.”
Freight carried its weight
Emirates SkyCargo recorded a strong performance contributing 14% of the airline’s total transport revenue.