Emirates reports record profit

 

The Emirates Group has reported record profit despite soaring oil prices and challenging business conditions in the second half of its 2007/08 fiscal year.

 

The group, which comprising Emirates Airline, Dnata and subsidiary companies, has recorded net profit for the last 20 years.

 

Group net profits increased 54.1% to AED 5.3 billion ($ 1.45 billion) for the financial year ended March 31.

 

Revenues were up from $8.5 billion to $11.2 billion and the group’s net margin improved from 11.4% to 13.2%.

 

Chairman and chief executive, Emirates Airline and Group, Sheikh Ahmed bin Saeed Al-Maktoum said: “It was another record year for the group in spite of a challenging business climate, particularly in the second six months where the soaring cost of jet fuel made a big dent, although the impact was partly offset by other operating gains.

 

“Despite the long-term forecast of a decrease in the number of passengers travelling in First and Business class, I am happy to report that Emirates once again bucked the trend and boosted our seat factor in the forward cabins.

 

“Emirates is fortunate to be located in Dubai at the centre of the new Silk Road between East and West. I believe the threat of an economic downturn will be offset for Emirates by the boom in the Middle East, especially the thriving travel industry of tourism and commerce.”

 

He also reiterated support for Dubai’s new low-cost airline, which has been established as a separate entity from the Emirates Group.

 

Remarking on competition in the region, he added: “This is a big cake and admittedly, Emirates has a big slice of it, but there is plenty for the other airlines and we welcome them to the region.”

 

Emirates said 21.2 million passengers flew with the airline in the latest financial year, 3.7 million more than in the previous year.

 

It said one of its biggest challenges was to continue attracting and retaining the best talent for the company’s growing requirements.

 

By Bev Fearis