Emirates’ revenues dip due to mixed global factors
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Combinations of factors have resulted in a dip in the Emirates Group half-yearly performance. The airline’s net profit witnessed a marginal increase of just one percent over 2013 to AED2.2 billion (US$607 million). The airline however suspended the highest number of routes in a year and temporarily ground part of its fleet due to runway closure.
Several factors have been attributed to the poor performance which includes a challenging business environment, ongoing health pandemic concerns, regional conflicts, and weakening global markets.
The cash flow was low which was reported at AED16.1 bn (US$ 4.4 bn), compared to AED19.0 bn (US$5.2 bn) as of 31 March 2014. The only ray of hope was the Group’s overall revenues which reached AED47.5 bn (US$12.9 bn) for first six months of its 2014-15 fiscal year, up 12% from AED42.3 bn (US$11.5 bn) from 2013-14.
His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group said: “The external threats that we cannot anticipate or directly manage, such as the global economic malaise, the Ebola outbreak, currency fluctuations, and regional conflicts, that negate our efforts and plans. These issues appear to be piling up, impacting commercial aviation and travel, but show no signs of speedy resolution. Therefore it is critical that we stay agile as we grow.”
The airline in the first half of the 2014-15 fiscal year posted a net profit is AED 1.9 bn (US$ 514 m), up eight percent from the same period last year. Business growth was witnessed in Available Seat Kilometres (ASKM) which grew by 6.5%; Revenue Passenger Kilometres (RPKM) was up 9.8% with Passenger Seat Factor increasing and averaging at 81.5.
The airline carried 23.3 m passengers between 1 April and 30 September 2014, up 8.4% from the same period last year.
dnata also experienced negative numbers wherein overall profit witnessed a dent by 26 % to AED339 m (US$ 92 m). The division revenue including other operating income is AED4.6 bn (US$ 1.2 bn), compared to AED3.7 bn (US$ one bn) last year.
The drop was also felt in the operations department wherein number of aircraft handled by dnata dropped to 140,582, a reduction of one percent. However, it is the airport operation that was the largest revenue contributor with AED1.4 bn (US$ 388 m), a three percent increase. dnata’s in-flight catering operation contributed AED1 bn (US$ 280 m) of its total revenue, up 15%. The Travel Services department contributed AED873 m (US$ 238 m), up 161%.
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