The Emirates Group has marked its 23rd consecutive year of profit with a record performance of $1.6 billion net profit, despite a challenging business climate.
The 2010-11 Annual Report of the Emirates Group - comprising Emirates Airline, dnata and their subsidiary companies – was released in Dubai today at a news conference hosted by His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.
“This year’s record results represent our drive to push the boundaries of aviation, questioning the norms and advocating for open and fair competition. Despite unforeseen challenges in the form of political instability and shocking natural disasters we have managed, through sheer determination, nimbleness and quick thinking, to produce our best ever result,” said Sheikh Ahmed.
In the face of many challenges, both political and environmental, the Group’s revenue increased by 26.4 % reaching a remarkable new level at $15.6 billion. Strong revenue has been the main driver for the Group’s record financial performance. The Group’s cash balance rose substantially to hit a record high at $4.4 billion.
The Group’s exceptional performance this year owes much to its dexterity and ability to adapt to changing market conditions quickly. In the first six months Emirates was able to capitalise on strong market demand thanks to its superior network and world-class product.
Customers’ continued preference for Emirates’ products has helped achieve sharp sales growth, record return for the financial year and the airline’s highest ever passenger numbers.
“Emirates continues to dismiss the perceived limitations of the aviation industry, advocating for an open skies environment that stimulates competition, an undeniable positive for the customer. The customer is at the heart of our operations, evident in the 31.4 million passengers that flew with us throughout the financial year, an increase of 14.5% or four million passengers on last year.”
During the year, in line with the airlines strategic growth plan, Emirates significantly increased its order for new aircraft, adding 32 additional Airbus A380s and 30 Boeing 777-300ERs. The combined value of these orders is $13.4 billion and brings the airline’s total number of aircraft on order at the end of the financial year to 193, worth over $66 billion.
Emirates took delivery of eight new aircraft during the year including one Boeing 777-300ER and seven of the airline’s flagship A380s expanding the airline’s fleet size to a robust 148 aircraft. Emirates remains the world’s largest A380 and Boeing 777 operator with 15 A380s and 86 Boeing 777s.
Emirates SkyCargo saw a strong increase in revenue up 27.6% to a record $2.4 billion) thanks to a worldwide rebound in cargo traffic. Cargo tonnage increased by 11.8% over the previous year to 1,767 thousand tonnes. Additionally freight yield per FTKM (Freight Tonne Kilometre) increased by 11.3%.
Cargo revenue contributed 17.4% to the airline’s total transport revenue, yet again one of the highest contributions of any airline in the world with a similar fleet. During the year, Emirates SkyCargo introduced four freighter-only destinations, Almaty, Bagram, Campinas and Erbil. At the end of the financial year, the freighter fleet was seven – three on wet lease and four on operating lease.
Employees were also a focus of the 2010-11 financial year with Emirates Airline increasing employee numbers by 5.9% to reach nearly 39,000 employees, an incredible feat for an airline that only last year celebrated its silver jubilee. Many of these new employees fall within the Cabin Crew and Flight Deck departments on account of the eight new aircraft delivered throughout the year; as well as in preparation for continued aircraft deliveries in 2011-12.
As of 31 March 2011, the group and its subsidiaries employed 57,000 staff, representing 163 different nationalities. The full 2010-11 annual report of the Emirates Group – comprising Emirates Airline, data and their subsidiary companies – is available on: www.theemiratesgroup.com/annualresults