Emirates Group has announced its 31st consecutive year of profit, but a ‘tough’ environment saw profits fall year-on-year.
Chairman and chief executive, His Highness Sheikh Ahmed bin Saeed Al Maktoum, said the group’s performance for the 12 months to the end of March ‘was not as strong as we would have liked’.
"Higher oil prices and the strengthened US dollar eroded our earnings, even as competition intensified in our key markets. The uptick in global airfreight demand from the previous year appears to have gone into reverse gear, and we also saw travel demand weaken, particularly in our region, impacting both dnata and Emirates," he said.
"Every business cycle is different, and we continue to work smart and hard to tackle the challenges and take advantage of opportunities."
The Dubai-based group’s overall profit fell 44% year-on-year to $631 million, while its airline profit dropped more dramatically by 69% to $237 million, its weakest earnings in a decade.
The sale of a 22% stake in Hogg Robinson, as part of HRG’s acquisition by American Express, boosted profits for travel division Dnata by 22% to $394 million.
Without the proceeds, Dnata’s profits would have been 15% down.
Dnata’s total revenue grew to $3.9 billion, up 10%.
The group said this reflects its ‘continued business growth across its four business divisions – both organic through customer retention and new contract wins; as well as via its new acquisitions’.
Dnata’s international business now accounts for 70% of its revenue.
