The Emirates Group has declared a 13.5 per cent increase in net profits to Dhs603 million (US$164m) for the financial
year 2001 - 2002, flying in the face of recent industry trends.
The Annual Report of the Group, which comprises Emirates Airline and Dnata,
was announced at a press conference at its Dubai hub today (Tuesday 30th
April 2002) by Group Chairman, HH Sheikh Ahmed bin Saeed Al-Maktoum.
In his review of the year, Sheikh Ahmed said: "In a normal year, our
profitable results would have been a superb achievement; in 2001- 2002, it
is exceptional and probably unique."
Total Group revenue increased by 12.9 per cent to Dhs7.8 billion (US$2.1b)
in the year ending 31st March 2002, compared with Dhs6.9 billion (US$1.9b)
in the previous year.
Of the Group net income of Dhs603 million (US$164m), Emirates' profits rose
11% per cent from Dhs421.8 million (US$115m) to Dhs468.2 million (US$127m).
Dnata returned a net income of Dhs134.8 million (US$37m), up from Dhs109.5
million (US$30m) for last year.
Referring to the recent industry trends following the tragic events of
September 11, Sheikh Ahmed commented: "This notoriously cyclical industry
of ours was already at the bottom of the cycle at the beginning of September
2001. The horrors of September 11 plunged it into chaos. We were not
immune."
However, the chairman pointed out that whilst it would have been forgivable
to give up on the prognosis for another profitable year, Emirates did not.
"We only briefly and marginally reduced our schedules, redoubled our efforts
in our markets, severely restrained costs, and kept to our plans," he said.
"This meant lending our full support to the Government of Dubai's massive
infrastructure plans to develop commerce and tourism and attract 15 million
annual visitors by the year 2010 - a strategy in which we have the utmost
confidence. Consequently, at the Dubai Air Show in November, we announced
orders for $15 billion worth of new aircraft, covering 22 A380 Super Jumbos
(with 10 options), 25 Boeing 777s, eight A340-600s and three A330-200s, in
addition to the six A340-500 very long-range airbuses (with 10 options)
already on order," added Sheikh Ahmed.
Maurice Flanagan, Emirates' Group Managing Director, brought up an issue of
concern to Emirates in his review of the year, saying that ill-informed
allegations about hidden subsidies (despite publication of transparent,
audited annual accounts) may affect government decisions on offering traffic
rights to Emirates.
"This hits us on a vulnerable spot because we ourselves have no such
protection at all," said Mr Flanagan. "The Government of Dubai, in the
promotion of Dubai's economy, sensibly maintains an Open Skies policy. We
are therefore subject to unlimited foreign competition in our home market.
In these circumstances, we have to be smart to survive, and I am happy to
say that we do much more than survive."
Emirates Airline
A bold "business as usual" strategy, in the aftermath of September 11, by
Emirates' sales teams network-wide, achieved excellent sales figures in the
last quarter, especially in securing business from competitors who had
cancelled or suspended flights to Dubai.
Overall, airline passenger numbers grew by 18.3 per cent to 6.8 million,
with seat factor down slightly from 75.1 per cent to 74.3 per cent.
Available seat kilometres increased by 19.7 per cent, with costs up by only
13.6 per cent, reflecting improved productivity.
Paradoxically, the upsurge in passenger traffic reduced available freight
space in aircraft. However, Emirates SkyCargo reported an 8.7 per cent
improvement in revenue, with cargo tonnage up by 19.5 per cent to 400,569
tonnes.
Mr Flanagan commented: "Our business suffered particularly badly from the
perception that, despite the appalling evidence to the contrary, the nearer
one is to Afghanistan, the greater the risk, and Dubai was falsely perceived
as being very close. Traffic on most of our routes, especially our crucial
European routes, fell drastically.
"It is, therefore, satisfying to be able to report, less than seven months
later, that the Group more than recovered its equilibrium."
Emirates' network grew to 57 destinations in 40 countries with the start of
operations to the Indian city of Hyderabad and Morocco's commercial capital,
Casablanca, in addition to extra services to Hong Kong, Tehran and
Johannesburg.
Emirates' Destination and Leisure Management division, which includes the
wholesale tour operating company Emirates Holidays, the Dubai Destination
Management Company Arabian Adventures, and the Al Maha Desert Resort, posted
results ahead of expectations, with customer numbers reaching 170,000.
Dnata
The number of scheduled airlines using the Dubai International Airport rose
from 95 to 105. As the sole ground-handling agent, Dnata Airport Services
was responsible for handling nearly 60,000 aircraft and taking care of more
than 13.8 million passengers, a 7.9 per cent increase over last year.
Handling freight operations at the airport, Dnata Cargo registered a record
10.9 per cent increase in tonnage to 635,298 tonnes. The division also
achieved an ISO9001/2000 certification, an upgrade in the original gained in
1995.
Dnata Agencies, General Sales Agent (GSA) for more than 30 international
airlines, moved from their downtown offices to a sleek, new Dubai Airline
Centre on the major Sheikh Zayed Road, adjacent to the city's growing
conurbations. |
