Emirates Group posts 24 percent increase in net profits

Published May 3rd, 2001 - 02:00 GMT

The Emirates Group has announced a 24.1 percent increase in net profits in the year ending March 31, 2001. The rise came despite having faced the challenges of volatile world markets and increased costs in the past year. The financial results of the Group—comprised of Emirates Airline and Dnata—were declared at a press conference on Saturday, April 28, in Dubai.  


The Group’s Chairman, HH Sheikh Ahmed bin Saeed Al-Maktoum, commented that “the airline and travel industries are notoriously unpredictable” which lead the company to make several major strategic and tactical changes in the past year.  


The group’s revenues and net profits reached Dhs6.9 billion and Dhs531 million respectively. The Emirates’ profits rose 40.2 percent from Dhs301 million to Dhs422 million, whereas Dnata reported a net income of Dhs109 million compared with Dhs127 million the previous year. 


Although the overall yield fell 6.2 percent due to the strong US dollar relative to major trading currencies, it was offset by the Group’s continued strategy of cost cutting, driving down unit costs by 4.6 percent. 


Looking forward to a year of relative consolidation, events proved otherwise, as Sheikh Ahmed pointed out: “We were also hoping for a seamless, stable and positive financial scene across our network but the world markets became bearish, several of our destinations faced inflationary pressures and jet fuel prices continued to rise and still remain buoyant.”  


In the past year, Emirates saw an increase of 19.8 percent in passenger volume, reaching 5.7 million, with 335,194 tons of cargo, representing a rise of 24.2 percent. Dnata also saw increased traffic through the new Sheikh Rashid Terminal, with 12.8 million passengers and 573,000 tons of cargo, thus an increase of 14.3 percent and 15 percent respectively. — (Albawaba-MEBG)  



© 2001 Mena Report (www.menareport.com)

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