Emirates posts US$1.2bn full-year profit
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Emirates Airline has posted a strong profit of AED4.56 billion (US$1.24bn) for its 2014-15 financial year, 40% higher than the previous year.
Despite what it called a “turbulent year”, including the 80-day closure of one of the runways at Dubai International Airport, the airline managed to increase its revenues by 7.5% to AED88.82bn, while its operating profit jumped 38.3% to AED5.89bn.
“The fall in oil prices provided cost relief in the second half of our financial year, however it did not offset the hit to our profitability caused by significant currency fluctuations, nor the hit to our revenue from operational adjustments in addressing the Ebola outbreak, armed conflicts in several regions, and the 80-day runway upgrading works at Dubai International Airport,” said HH Sheikh Ahmed bin Saeed Al Maktoum, Emirates’ chairman & CEO.
“Achieving our 27th consecutive year of [group] profit and one of our best performances to date, is testimony to the strength of our brands and business fundamentals, as well as the dedication and talent of our workforce,” he added.
Emirates carried a total of 49.29 million passengers in 2014-15, up 10.7% year-on-year. It also increased its seat capacity by 9.1%, driven by the delivery of 22 new passenger aircraft during the year: 12 Airbus A380s and 10 Boeing 777s. Ten older aircraft were phased out, meaning that Emirates ended the year with a total fleet of 231 aircraft.
The airline launched five new passenger destinations during the year, Abuja, Brussels, Budapest, Chicago, Oslo, and added flights and capacity on 34 other routes.
The decline in oil prices towards the end of the year helped reduce Emirates’ fuel bill by 7% to AED28.7bn, although fuel still accounts for 35% of the carrier’s operating costs. Europe was the airline’s highest revenue contributing region in 2014-15, accounting for AED25.2bn of turnover, up 7% year-on-year. Asia Pacific was second (+3% to AED 24.6bn), but the highest growth was seen in the Americas, where revenues jumped 20% to AED11.0bn.
For 2015-16, Emirates has already announced two new routes: Bali and Orlando.
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