Emirates sees profits up 32% as jet fuel prices dip
In 2013-14, Emirates started A380 services to Barcelona, Brisbane, London Gatwick, Los Angeles, Mauritius and Zurich, bringing the total number of destinations served by its flagship Airbus aircraft to 27.
The Emirates Group yesterday announced its 26th consecutive year of growth in profits, declaring a profit of USD1.1 billion or 32% more than the previous year.
The income of Emirates has, for the first time, exceeded AED 80 billion, setting a new record at AED 82.6 billion (USD22.5 billion), on the back of slightly reduced prices of jet fuel compared to last year.
Overall, the Dubai-based aviation major ended the year strongly despite competitive pressures and a slower-than-expected recovery in the global economy.
Also, in 2013-14, Emirates started A380 services to Barcelona, Brisbane, London Gatwick, Los Angeles, Mauritius and Zurich, bringing the total number of destinations served by its flagship Airbus aircraft to 27.
The financial year ending 31 March 2014 was also marked by an unprecedented level of investment across the Group and continued expansion of its global footprint.
“During 2013-14 the Group has collectively invested more than USD6 billion, the largest amount in a financial year. Each invested dirham has been carefully evaluated to achieve objectives in the short and long term – whether to expand our capabilities, improve our product or expand the presence of our company,” said His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group.
The Group has continued to invest in and develop its employee base, increasing the total number of employees by 11%, in addition to a strong workforce of 75,000, comprising more than 160 nationalities across more than 80 subsidiary companies. Revenue per employee increased by 4%, or by USD0.5 million.
In 2013-14, Emirates increased its capacity to 5.9 billion ATKM (Available Tonne Kilometres), the largest capacity increase in a single year in the history of the company. This brings the total capacity of Emirates, passenger and cargo, to ATKM 46.8 billion at the end of the financial year.
Emirates has received 24 new aircraft during the year, including sixteen A380, six Boeing 777-300ER and two Boeing 777F, bringing the total fleet to 217. The company remains the world’s largest operator of Boeing 777 and A380 – both featuring among the most modern and efficient widebody aircraft in the sky today.
With the delivery of new aircraft, Emirates has launched services to nine new destinations : Boston, Clark, Conakry, Haneda , Kabul , Kiev, Sialkot , Stockholm and Taipei, and also introduced a new service between Milan and New York.
Based on its consistent financial performance and buoyant investor confidence, Emirates has raised a total of USD3.3 billion through its various financing structures, mainly to ensure the continued expansion of its fleet. In addition, eight of the supplied equipment during the fiscal year were financed by two corporate bonds issued in early 2013, which helped to raise USD 1.8 billion .
Income earned from the six Emirates operating regions continues to be well balanced, with contributions by area not exceeding 30% of total revenues. The regional grouping of East Asia and Oceania remains the largest revenue contributor with USD 6.5 billion, 14% more than in 2012-13.
For the rest of the world, Emirates has seen a strong growth in revenues, with the largest increase recorded for Africa by 15%, to hit USD 2.1 billion.
For 2014-15, Emirates has announced five new routes including Abuja, Brussels, Chicago, Kano and Oslo.