Emirates Airline's profit up by 73.5% to US$ 429 Million

Emirates Airline has announced a record net profit of US $429 million for the financial year 2003-04 ended on 31st March. This represents a 73.5 per cent improvement over last year's net profit. The airline's revenue also reached a best-ever $3.6 billion, which is up 37 per cent from last year.

Emirates Airline carried 10.4 million passengers during the financial year, an increase of almost two million passengers or 23 per cent more than the year before.

The total profits of the Emirates Group (which includes Emirates Airline, Dnata and associated companies) were an all-time high of $476 million, 67 per cent better than last year. The Group's total revenue was a record $3.8 billion, up 35.5 per cent from last year.

Dnata's profit of $47 million was 23 per cent better than last year, on turnover of $298 million, 14 per cent above the year before.

The Group's record annual results stem from growing customer preference for the airline and the products and services of its associated travel-related companies. The ownership will be paid a dividend of $90 million.

The 2003-04 Report and Accounts of the Dubai-based Emirates Group were disclosed by His Highness Sheikh Ahmed bin Saeed Al-Maktoum, Chairman of Emirates.

Sheikh Ahmed said: "The Emirates Group's strong performance once again in the latest financial year confirms not just that we are on the right track but also that we are doing our part to help our government realize its aggressive master plan for Dubai's development."

He added: "We have plans in place for 2004-05 to keep the momentum and continue to deliver the same kind of performance."

Emirates SkyCargo moved nearly 660 thousand tonnes in the year for an increase of 26 per cent, and the division's revenue rose 42 per cent to $659 million, thus contributing a record 20 per cent of the airline's transport turnover.

Its five dedicated freighters now fly to eight cargo-only destinations and provide nearly one-third of the total cargo revenue, while the bellies of Emirates' all-wide body passenger aircraft support air freight services to the other 67 cities in the Emirates SkyCargo network.

Cash balance for Emirates stood at a robust $1.8 billion at the year's end, an improvement of $500 million vs. the preceding year - and substantially more than the internal benchmark of cash balances for at least six months' worth of debt obligations and lease rentals.

In outlining the reasons for the Group's strong growth, Sheikh Ahmed reaffirmed the integral part Dubai plays in the success of the Emirates Group. 

In commenting on "the recipe for our continued success", he singled out "the leveraging of Dubai's location as a global hub and of the government's ambitious development programme, our multi-billion dollar investment in new equipment and, crucially, the skill and dedication of our team."

Sheikh Ahmed also noted: "We have not joined any alliances nor followed any 'guru's teachings' and have simply knuckled down to winning more supporters by offering them quality products."

He added that the Emirates Group as a whole contributed an estimated $3.7 billion to the U.A.E. economy during the past financial year. Turning to the Group's outlook for 2004-05, he said: "This financial year will see the airline increase its capacity by 26 per cent, while Dnata will continue its winning ways with new initiatives to boost services to customers."

At the end of the financial year, the Group employed 22,500 people - an increase of 4,000 or 22 per cent over last year. This represented an average weekly hiring of 77 new employees - and a mere fraction of the staggering 5,000 job applications received weekly on average by the Group. The total of 265,000 applications received during the past financial year represented an increase of 29 per cent over the previous one.

The Emirates Airline's fleet expanded by 15 aircraft during the past financial year and had reached 61 by 31 March. It presently stands at 67 - including five freighters - serving 75 destinations in 53 countries. 

With 90 new aircraft in the pipeline, the airline expects its fleet to continue to expand at the rate of at least one new aircraft per month for the rest of this decade and is on course for a 130-plus fleet by 2012. It expects to hire its 1,000th pilot and 5,000th cabin crew within the next few weeks.

The dramatic growth in equipment and staff experienced by the airline was achieved alongside a significant unit cost improvement of 3.6 per cent vs. last year. When compared to 1999-2000, the cost per Available Tonne Kilometre (ATKM) improved by a full 10 per cent. The airline's breakeven load factor stood at an exceptionally low 59 per cent at the close of the financial year.

Dnata, now in its 45th year of existence, broke more records, registering healthy growth across its three main departments. Dnata Agencies, the largest travel agency in the Middle East, saw year-on-year revenue - as well as tickets issued - rise by 12 per cent. 

Dnata Airport Operations handled over 19 million passengers - 2.7 million or 16 per cent more than the year before. It also supported 110 scheduled international airlines operating to Dubai International Airport (five more than in 2002-03) and almost 80,000 aircraft movements - an increase of 15 per cent.

Dnata Cargo handled nearly 406 thousand tonnes - an increase of 16 per cent (excluding perishable goods handling, transferred to the dedicated cargo handling facility of Emirates SkyCargo) - while its customer portfolio at its Freezone Logistics Centre (FLC) grew to more than 40 airlines.

Maurice Flanagan, Emirates' Vice Chairman and Group President, commented: "I have been associated with Dnata for 26 years and value the high standards which we have managed to maintain, in all the diverse activities carried out under the Dnata label."

Emirates' Destination and Leisure Management (D&LM) division - which encompasses the wholesale tour-operator Emirates Holidays, the destination management company Arabian Adventures, and the Al Maha Desert Resort & Spa - registered a 17 per cent increase in clients from last year, to over 240,000.

With sustained growth in both inbound and outbound bookings, D&LM's sales revenue grew a vigorous 26 per cent to Dhs 585 million ($160 million), while unit costs shrank by eight per cent.