Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

No stopping Emirates as net profit climbs 43% in 2013  Join our daily free Newsletter

MENAFN - Khaleej Times - 09/05/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) Dubai carrier?s net profit soars 43% to dh3.

emirates dubai’s flagship airline on thursday declared a 43 per cent year-on-year increase in net profit for financial year 2013-14 mainly on international expansion and lower fuel costs.

the world’s fourth-largest carrier of international passengers reported a dh3.3 billion profit for 2013 compared to dh2.3 billion for the previous year according to its financial statement. its revenues rose to dh82.6 billion showing a 13 per cent increase over previous year’s dh73.1 billion.

“it has been a good year. there was growth in our business all round and fuel costs fell by about four per cent last year which helped” shaikh ahmed bin saeed al maktoum president of the dubai civil aviation authority chairman of emirates airline and chief executive of the emirates group told reporters a news conference at the emirates headquarters in dubai.

he said that the profit margin is more than double the industry. responding a question he said that the 80-day runway repair will at dubai international airport will cost the airline dh1 billion in revenues this year.

emirates is expected to be more of the same as it heads towards a 27th straight year of profitability according to a senior aviation analyst.

“emirates’ 26th year of profitability underlines the airline’s excellent execution of managing to grow faster than any other airline while being totally independent” saj ahmad chief analyst at london-based strategicaero research told khaleej times. “emirates’ strategy of organic growth is paying significant dividends as the airline effectively suppressed fuel costs while deploying fuel-efficient jets like the 777-300er and capitalising on effective use of the high-capacity a380 on key trunk routes that have lowered costs per seat and made fares more price elastic for customers.”

emirates which is the world’s largest customer for the twin-deck airbus a380 as well as for boeing’s new 777 jet said it carried 44.5 million passengers last year more than 13 per cent it carried in the previous year. the airline added nine destinations in asia europe and north america and took delivery of two dozen new planes. a double-digit growth in passenger numbers has helped to boost traffic at dubai international to the extent that it has overtaken london heathrow for this first quarter this year as the world’s busiest international airport ahmad said.

emirates has used dubai as a true global nexus point and also leveraged the strength of the a380 as a big mover and the 777-300er as a long-haul high-yield revenue-raising machine to augment its growth he added.

the carrier is also seeing average fares come under pressure as rivals seek to counter its expansion shaikh ahmed said.

“our industry has always been competitive and that competition is getting more intense.”

he mentioned that competition from other airlines which “lobby their governments to restrict us” remained another challenge.

an emirates route from milan to new york’s john f. kennedy airport introduced in last october faces a challenge in the italian courts. “we will continue service” shaikh ahmed told reporters in response to a question.

in 2013-14 emirates increased capacity by 5.9 billion available tonne kilometres (atkms) the largest capacity increase in the airline’s history in a single year. this brings emirates’ total passenger and cargo capacity to 46.8 billion atkms at the end of the financial year. the airline also marked a new record of over 1 million block hours in terms of fleet production.

emirates received 24 new aircraft during the year including 16 a380s six boeing 777-300ers and two boeing 777fs bringing its total fleet count to 217. the airline remains the world’s largest operator of the boeing 777 and a380 – both aircraft being amongst the most modern and efficient wide-bodied jets in the sky today.

emirates revenue for the first time surpassed dh80 billion at a new record of dh82.6 billion. while the average price of jet fuel remained high it was slightly lower compared to last year and has supported emirates’ bottom line improvement. emirates’ fuel bill increased by 10 per cent over last year to reach dh30.7 billion. total operating costs increased by 12 per cent compared to a revenue increase of 13 per cent over the 2012-13 financial year.

the airline successfully managed increased competitive pressure across all markets to record a profit of dh3.3 billion an increase of 43 per cent over last year’s results and a healthy profit margin of 3.9 per cent.

carrying record passengers emirates maintained a robust passenger seat factor at 79.4 per cent nearly consistent with last year’s results in spite of a 15 per cent increase in seat capacity by available seat kilometres (askms). this highlights the strong consumer desire to fly on emirates’ state-of-the-art aircraft. passenger yield remained steady at 30.4 fils (8.3 us cents) per revenue passenger kilometre (rpkm).

emirates also improved its premium seat factor despite lingering economic uncertainty and strong competition in many markets. premium and overall seat factor for the airline’s flagship a380 aircraft outperformed the network underscoring the popularity of emirates’ premium and a380 product amongst passengers. over 18 million passengers had flown on an emirates a380 when the airline marked its fifth anniversary of a380 operations in august 2013.

revenue generated from across emirates’ six regions continues to be well balanced with no region contributing more than 30 per cent of overall revenues. east asia and australasia remained the highest revenue contributing region with dh23.8 billion up 14 per cent from 2012-13. gulf and middle east revenue increased 17 per cent to dh8.3 billion and europe revenue increased 16 per cent to dh23.4 billion reflecting new destinations as well as increased frequency and capacity to these regions.

across the rest of the globe emirates saw strong revenue increases from africa up 15 per cent to dh7.7 billion the americas up 11 per cent to dh9.2 billion and west asia and indian ocean with dh8.3 billion in revenue up 3 per cent.

in its first full year of operations the newly commissioned concourse a at dubai airport for emirates’ growing a380 fleet witnessed a significant passenger throughput with 37 per cent or 8.2 million emirates passengers departing dubai enjoying the new state-of-the art facilities spacious lounge areas to board 27000 flights.

looking forward to 2014-15 emirates has to date announced five new passenger routes including abuja brussels chicago kano and oslo.

— abdulbasit?khaleejtimes.com


 


Khaleej Times




  MENA News Headlines
 Jan 28 2015 - Gulf states to rethink monetary policyMENAFN
(MENAFN) Gulf Arab oil states may need to rethink longstanding economic policies, including their fixed exchange rates, over the next five to 10 years as economic cycles in the region and the US ...

 Jan 28 2015 - DIB picks arrangers for potential Tier 1 sukukKhaleej Times
(MENAFN - Khaleej Times) Dubai - Dubai Islamic Bank, or DIB, said on Tuesday that it picked eight banks to arrange roadshows from January 8 for a potential benchmark size dollar-denominated sukuk ...

 Jan 28 2015 - What next for Londonium and Barclays?Khaleej Times
(MENAFN - Khaleej Times) I have tried to visit Britain on the eve of every general election since the end of the Thatcher era (by Tory regicide, not the ballot box) in November 1990 in search of ...

 Jan 28 2015 - Emirates NBD - holding the banking fortKhaleej Times
(MENAFN - Khaleej Times) The banking industry looks set to sustain positive trends this year due to strong macroeconomic economic indicators, sufficient liquidity and low interest rates in the ...

 Jan 28 2015 - China pumps cash into banks in a bid to accelerate growthKhaleej Times
(MENAFN - Khaleej Times) Beijing - China's central bank has bolstered support for the cooling Chinese economy by injecting another 50 billion yuan ($8.1 billion) worth of short-term loans into banks ...

 Jan 28 2015 - Union National Bank posts 16% jump in annual earningsKhaleej Times
(MENAFN - Khaleej Times) People walking past a Union National Bank branch in Dubai. The total assets of the UNB Group increased by seven per cent in 2014 to Dh93.5 billion as at December 31, 2014. - ...

 Jan 28 2015 - Gulf Arab countries may need to rethink policy: Qatari bankerKhaleej Times
(MENAFN - Khaleej Times) Dubai - Gulf Arab oil states may need to rethink longstanding economic policies, including their fixed exchange rates, over the next five to 10 years as economic cycles in ...

 Jan 28 2015 - GCC retail sector on growth pathKhaleej Times
(MENAFN - Khaleej Times) Dubai - GCC retail sales are expected to grow at a 7.3 per cent compound annual growth rate (CAGR) between 2013 and 2018 to reach $284.5 billion, according to Alpen ...

 Jan 28 2015 - Dubai International airport crowned as world's busiestKhaleej Times
(MENAFN - Khaleej Times) The airport's passenger numbers boosted by 6.1 per cent to 70.5 million in 2014 and pushed the Heathrow down to the second position as London's top airport handled 68.1 ...

 Jan 28 2015 - Sharjah's Dh17.7b budget to ensure economic upliftKhaleej Times
(MENAFN - Khaleej Times) Sharjah - His Highness Dr Shaikh Sultan bin Mohammed Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, on Tuesday approved the 2015 general budget of the emirate ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help