Emirates airline posts profit of USD 237m, down 69pc
-A Monitor Report16 May, 2019 | 1286 Views|-+
Dubai : Against a backdrop of high fuel prices, strong competitive pressure, and unfavourable currency impact, Emirates airline reported a profit of USD 237 million for the financial year ended March 31, 2019, a decline of 69 per cent over last year's results. Despite stiff competition across its key markets, Emirates increased its revenue by 6 per cent to USD 26.7 billion.
Released on May 9, 2019 in its 2018-19 Annual Report, the Emirates Group comprising Emirates airline and dnata and other subsidiaries posted a profit USD 631 million for the financial year, down 44 per cent from last year. However, the Group's revenue reached USD 29.8 billion an increase of 7 per cent over last year's results.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said, "2018-19 has been tough, and our performance was not as strong as we would have liked. Higher oil prices and the strengthened US dollar eroded our earnings, even as competition intensified in our key markets. The uptick in global airfreight demand from the previous year appears to have gone into reverse gear, and we also saw travel demand weaken, particularly in our region, impacting both dnata and Emirates."
Emirates airline during 2018-19 carried 58.6 million passengers (up 0.2 per cent). With seat capacity increasing by 4 per cent, the airline achieved a Passenger Seat Factor of 76.8 per cent.
Emirates SkyCargo, cargo transportation division of Emirates airline contributed to 14 per cent of the airline's total transport revenue. Emirates' cargo division reported revenue of USD 3.6 billion, an increase of 5 per cent over last year, while tonnage carried slightly increased by 1 per cent to reach 2.7 million tonnes.
For 2018-19, dnata, the air service provider of Emirates Group recorded its most profitable year with USD 394 million profit. dnata's total revenue grew to USD 3.9 billion, up 10 per cent. dnata's international business now accounts for 70 per cent of its revenue. dnata's Catering business accounted for USD 717 million of dnata's revenue, significantly up by 23 per cent. The inflight catering business uplifted more than 70 million meals to airline customers, an increase of 27 per cent.
Emirates presently operates 3 flights a day from Dhaka offering convenient connections via Dubai to over 150 destinations in its global network.
Thierry Antinori, CCO resigns
Thierry Antinori, Chief Commercial Officer of Emirates resigned, a spokesperson announced on May 12. The move came right after the Gulf carrier announced its weakest profit in a decade.
Antinori joined Emirates as Executive Vice President for passenger sales worldwide in October 2011 and was promoted to CCO in June 2013.
Emirates has appointed Adnan Kazim, Divisional Senior Vice President, Strategic Planning, Revenue Optimisation and Aeropolitical affairs, as the acting CCO, the spokeswoman said.