Emirates Group announces half yearly profits

The Emirates Group posted a AED 2.1 billion (US$ 575 million) net profit for the first six months of its current fiscal year ending 30th September 2012, up 68% from AED 1.3 billion (US$ 343 million) from 30 September 2011.
 
Despite fundamental challenges, the Group’s revenue and other operating income rose to AED 38.2 billion (US$ 10.4 billion) an increase of 16% over the last year’s results. This constitutes the first time in the Group’s history that revenue surpassed the US$ 10 billion mark in a six month period. The Group’s cash position on 30 September 2012 remained strong at AED 15.2 billion (US$ 4.1 billion), compared to AED 17.6 billion (US$ 4.8 billion) as of March end 2012. The AED 2.4 billion difference in the cash balance is primarily resulting from a AED 2.0 billion Sukuk bond repayment in June 2012. 

“The Emirates Group half-year performance is the result of hard work and our drive to stay on course and continue to grow despite the precarious marketplace,” said His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group. “We have continued to invest in the infrastructure of both Emirates and dnata and it continues to pay off.”

Analyst Saj Ahmad commented: “Emirates first half performance shows that despite ongoing fuel price escalation, the carrier has still managed to boost earnings and drive revenue through its expansion. Coupled with a solid 80% load factor, a profit of $464m is a figure many other carriers in this climate simply cannot attain in a year, let alone six months. Emirates effective management of fuel saving jets like the 777-300ER as well as the A380 have assisted their bottom line.
 
"Critically, Emirates also grew its revenues by a strong 16%, topping the $10bn barrier - given the vast amount of traffic it is generating and sustaining, the airline is well place to meet or exceed record profits by next May if things stay on track. Emirates management team can be proud of an achievement such as this, at a time when economic and fiscal pressures in the USA and Europe have seen other airlines lose money hand over fist."
 
Ahmad adds: "Going forward, Emirates expansion will keep it ahead of its GCC rivals as the biggest and fastest growing airline. At the same time, the airline will have to also consider its footprint at Dubai International Airport too. If they carry on growing at their current rate, they may well have to consider utilising space at Al Maktoum International Airport which opens for passenger services next year. Taking advantage of the vacant space there will allow Emirates to leverage that capacity to further augment new routes and induct new airplanes."