Quantcast
Latest Stories

Emirates airline group annual profit dives 61%



Sheik Ahmed Bin Saeed Al Maktoum, chairman and chief executive of Emirates Airline & Group talks to an Associated Press reporter during the Arabian Travel Market exhibition in Dubai, United Arab Emirates last May 1, 2012. The airline group reported a 6- percent dive in net profit in the year to March 31, 2012. AP PHOTO/KAMRAN JEBREILI

DUBAI—Dubai’s Emirates airline group posted a 61-percent slump in net profit in the year to March 31 due to unprecedented economic pressures and record high fuel prices, the company said Thursday.

Total profits for Emirates Group, including all of its subsidiaries, dropped to 2.3 billion dirhams ($629 million) in 2011-2012 from 5.9 billion dirhams ($1.6 billion) for the previous year, the company said.

Net profits for the airline alone stood at 1.5 billion dirhams ($409 million), compared with 5.4 billion dirhams ($1.5 billion) for the same period in the year before.

“Achieving our 24th consecutive year of profit and maintaining an upward growth trajectory is an achievement that belies the industry norm,” said chairman and chief executive Sheikh Ahmed bin Saeed al-Maktoum.

Despite a difficult operating environment, Emirates Group continued to invest in and expand on its employee base, increasing its overall staff count by more than 10 percent, the company said.

The company also attributed part of the drop in profits to massive new investments.

“Throughout the 2011-12 financial year the Group has collectively invested close to 14 billion dirhams ($3.8 billion) in new products. This investment has garnered new customers and increased our international presence,” Sheikh Ahmed said.

During the year, Emirates acquired a staggering 22 new aircraft, its highest in any single year, funded by a wide variety of financing structures, it said.

With an increased fleet, Emirates further invested in its network by adding 11 new destinations and expanding capacity to 34 cities, a record for the airline.

Emirates airline’s income reached a record high 62.3 billion dirhams ($17 billion), up 14.9 percent from 2010-2011, the company said.

Despite this strong revenue growth, the stifling cost of jet fuel impacted the net profit, it said.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: aviation , Business , company , Earnings , Emirates Group , net profit , UAE

  • lilybugan

    how can it be affected by high fuel prices when it produces its own fuel??

    • GorgeousB

      well, it is an airline company not an oil producing company.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Seabed search for missing Malaysian jet to widen
  • Lacson rejects calls to name ‘pork’ execs
  • Obama due in Seoul as North Korea nuclear test fears grow
  • Hold departure order out vs Corona, Singson
  • Malaysia to release MH370 report–PM
  • Sports

  • Michael Phelps loses to Lochte in comeback meet
  • Sharapova advances to Stuttgart quarterfinals
  • Galedo caps ride of redemption
  • Beermen, Express dispute second semis slot today
  • Lady Agilas upset Lady Bulldogs in four sets
  • Lifestyle

  • ‘Recovered’ Banksy works on display ahead of sale
  • Marinduque: Visiting the ‘palm of the ocean’
  • First at Vatican in 60 years
  • How Jing Monis Salon gave Krissy the pixie
  • Want to be a supermodel? Work on your inner beauty, says Joey Espino
  • Entertainment

  • Paul McCartney to play at Candlestick concert
  • Kristoffer Martin: from thug to gay teen
  • Has Ai Ai fallen deeply with ‘sireno?’
  • California court won’t review Jackson doctor case
  • Cris Villonco on play adapted from different medium
  • Business

  • PAL hailed for ban on shark fin cargo
  • BSP to change tint of P100 bill
  • Nielsen sees car buying boom in the Philippines
  • How author of best-seller exposed ‘one percent’ economic elite
  • Bangko Sentral readies new bank lending rules
  • Technology

  • Cloud strength helps Microsoft earnings top Street
  • Vatican announces hashtag for April 27 canonizations
  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • Opinion

  • Corruption not invincible after all
  • Editorial Cartoon, April 25, 2014
  • No deal, Janet
  • Like making Al Capone a witness vs his gang
  • MERS-CoV and mothers
  • Global Nation

  • Filipinos second-shortest in Southeast Asia
  • China welcomes PH apology
  • Only 4 Etihad passengers not accounted for
  • Abandoned in Malta,15 PH seamen return
  • Senator hopes PH will also get same vow
  • Marketplace