Emirates Group announces a profitable Fiscal year

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Earlier in May, the Emirates Group announced that the financial year 2015-16 was their 28th consecutive year of steady business expansion and profit.

Despite the numerous global and operational challenges, the Group ended the fiscal year 2015-16 with remarkable profits and substantial market share. Based in Dubai the Emirates Group is an international aviation holding company, comprising dnata and Emirates collectively. dnata is an aviation services company which provides handling services to 17 airports while Emirates is the largest airline service in the Middle East region with airplanes flying across six continents over 140 destinations. The Annual Report for 2015-16 marked the end of financial year on March 31, 2016, with a profit of AED 8.2 billion; an increase of around 50% profit than last year. Both Emirates and dnata have expanded their global hold and strengthened their business through strategic and well-planned investments. Though the Group’s revenue reached AED 93 billion showing a decrease of 3% over last year’s results, its cash balance increased to AED 23.5 billion. In alignment to the overall profit, the Group has announced a dividend of AED 2.5billion to Dubai’s Investment Corporation.

Emirates

At the end of the financial year 2015-16, Emirate’s total cargo and passenger capacity crossed the mark of 56 billion and touched the benchmark of 56.4 billion Available Tonne Kilometres (ATKMs). Emirates has added 29 new aircraft, 16 A380s, 12 Boeing 777-300ERs, and 1 Boeing 777F, bringing its total aircraft count to 251.

emirates online

Nine aircraft were phased out during the financial year bringing the average fleet lifetime down to 74 months; this is approximately half the industry average of 140 months. At the same time, Emirates remains the world’s largest operator of the Boeing A380 and 777; both aircraft are considered as the most efficient wide-bodied and modern jets. Emirates have added eight new passenger destinations: Orlando, Multan, Mashhad, Istanbul, Clark, Cebu, Bali, Bologna and two new freighter destinations: Ciudad del Este and Columbus. According to the Annual Report, the average price of jet fuel fell and hence the airline’s fuel bill decreased to AED 19.6 billion, showing a decrease of 31% over last year. Fuel now adds up to 26% of the overall operational costs, compared to 35% during the financial year 2014-15.

DNATA

Throughout its 57 years of service, 2015-16 has been the most fruitful and profitable year for dnata as it crossed AED1 billion profit for the very first time. Its revenue has grown to AED10.6 billion as dnata’s international business is now responsible for driving more than 64% of its revenue. Cargo handling by dnata in the UAE dropped by 6% to

689,000 tonnes while the number of aircraft increased by 12% to 211,000 during the financial year 2015-16. dnata’s International Airport Operations division showed a vivid increase in its earnings, amounting to AED 2.1billon. dnata’s Travel Services division has become the largest segment when it comes to its revenue contribution by reaching AED 3.3 billion. The operating costs also increased by 17% in the financial year, accounting to AED 9.6 billion. dnata’s cash balance is at a record high of AED 3.5 billion. The firm expects the new fiscal year to break High records of its previous year, backed by a robust balance sheet, solid track record, diverse global portfolio, and international talent pool.

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