Emirates’ half-year profits of Dhs 752 million surpasses last year

Emirates airline produced a net profit of Dhs 752 million (US$205 million), for the first six months of its current financial year ending 30th September 2009. This represents a 165 percent improvement compared to Dhs 284 million (US$77 million) net profits for the same period in 2008.

During this period the airline made an estimated direct contribution of Dhs 10 billion, and an estimated indirect contribution of Dhs 14 billion to the U.A.E economy, carrying over 13 million passengers and over 700,000 tonnes of cargo, and in the process also helped other businesses operating at Dubai International Airport achieve growth in revenue and traffic.

Emirates supported and stimulated growth in the aviation and tourism industry by continuing fleet and network expansion with eight new aircraft added, two new destinations launched and additional frequencies introduced; progressing its ongoing programme to install the latest inflight entertainment systems and mobile connectivity across its fleet; and investing in the training and retention of its 29,000-strong staff.

In addition the airline invested over Dhs 40 million to activate two major campaigns promoting travel to and via its Dubai hub: "Keep Discovering Dubai" launched with industry partners in April-June hosted over 2,000 travel and media representatives from all over the world to experience Dubai's latest attractions; and "Meet Dubai", Emirates' largest investment to date in a single global advertising campaign, showcasing Dubai's unique appeal through its people and residents.

HH Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates airline and Group said: "Emirates remained focused on its long-term strategy despite the global economic slowdown. We have continued to invest in our eco-efficient aircraft fleet; in strengthening our global route network; and also in supporting the infrastructure for our growing business.

"The months since the global meltdown have really tested our mettle. Unlike others in the industry, Emirates did not cut back on its product, service or people. Instead, we invested in these areas and looked to our people to develop ever more innovative ways to manage costs, improve efficiencies, reallocate resources, and drive alternative strategies for the business. Emirates' latest half-year performance testifies to the airline's strong business foundations and agility in adapting to the challenging global economic environment."

In the first-half of its financial year 2009-10, Emirates posted strong business growth, both in terms of capacity on offer and traffic carried compared to the corresponding period in 2008, performance that has been in stark contrast to the current trend seen across the aviation industry. Capacity measured in Available Seat Kilometers (ASKM), grew by 22%, whilst passenger traffic carried measured in Revenue Passenger Kilometers (RPKM) was up 21 percent with Passenger Seat Factor sustained at a high level, averaging 77.5 percent, slightly down compared to 78.3 percent for last year. The volume of cargo uplifted was in line with last year.

Total revenue at Dhs 19.8 billion (US$ 5.4 billion) was lower by 13.5 percent compared with Dhs 22.9 billion (US$ 6.2 billion) recorded last year, largely reflecting lower passenger and cargo yields. However, total expenditure at Dhs 19.0 billion (US$ 5.2 billion) was 15.8% lower than Dhs 22.6 billion (US$ 6.1 billion) last year, helped by cost containment measures and lower jet fuel prices.

Sheikh Ahmed added: "While some say the green shoots of economy recovery are sprouting, we expect it will take at least another year or two, before demand for air transport and travel services starts picking up again. In the meantime, Emirates is well-placed to weather the rest of the storm. We will continue to chart our course with long-term goals in mind while staying flexible to maximise opportunities and mitigate risks."

Emirates' cash position (including held to maturity cash investments of Dhs 200 million) on 30th September was Dhs 6.7 billion (US$1.8 billion), compared to Dhs 7.4 billion (US$2.0 billion) six months earlier. This was after funding a significant ongoing capital expenditure programme that included pre-delivery payments for new aircraft on order, building projects in Dubai, and an upgrade of the interiors of some of the existing fleet. During the first half, Emirates successfully raised aircraft financing of Dhs 3.3 billion (US$0.9 billion).

Since April 2009, Emirates has launched passenger services to two new destinations, Durban and Luanda, expanding its global network which now spans 101 cities on six continents.

Emirates' current fleet size is 139 aircraft. Since the beginning of its current financial year, the airline has received delivery of eight new wide body aircraft, with another 10 new jets scheduled to be delivered before the end of the financial year (31 March 2010).