Emirates Group posts 32% profit boost

The Emirates Group has posted a 32% increase in profits at AED4.1 billion (US1.1bn) for its latest financial year ending 31 March 2014.

The Dubai-based group posted its 26^th consecutive year of profit, with revenue up 13% year-on-year to US$23.9bn.

It came as the group spent the highest it has in a financial year with an US$6bn investment on its products and employees.

Emirates Airline saw capacity growth with 24 new aircraft and nine new destinations during the year. Its total operating costs increased 12% but the carrier still posted a profit of US887m, an increase of 43%.

The airline carried a record 44.5 million passengers, up 13% last year, with its premium load factor on its Airbus A380s outperforming the rest of its network. More than 18 million people have flown on an Emirates A380, used on routes from Barcelona, Brisbane, London, Los Angeles, Mauritius and Zurich.

Revenue from Asia and Australia still leads although Africa is the fastest growing region.

Meanwhile tour operator and ground handling arm dnata had its most successful year to date with profits at US$226 million and revenue at US$2.1bn.

Strong volumes from the UK and Dubai helped the numbers improve particularly from its airport handling contracts.

Travel Republic and recently-acquired Gold Medal were the main contributors to dnata’s travel service seeing revenue growth of 22% to US$180m, with turnover for this division up 10% to US$1.6bn.

“We are moving into the new financial year with confidence, and a strong foundation for continued profitability with our strong balance sheet, solid track record, diverse global portfolio and international talent pool,” said Sheikh Ahmed. “Operating in a dynamic and highly-competitive environment means we have to stay agile, and work even harder to meet and exceed our customers’ expectations. With the help of our 75,000 strong multicultural workforce, we have no doubt that we will be able to capitalise on the opportunities in the year ahead.”