Emirates Group announces half-year performance for 2019-20
Group: Revenue down 2% to AED 53.3 billion (US$ 14.5 billion), and profit of AED 1.2 billion (US$ 320 million), up 8%. Results impacted by Dubai International Airport (DXB) runway closure, decline in fuel cost, unfavourable currency movements.
Emirates: Revenue down 3% to AED 47.3 billion (US$ 12.9 billion), and profit increase of 282% to AED 862 million (US$ 235 million). Improved seat load factor of 81.1%, up 2.3%pts, with 29.6 million passengers carried. Dubai’s strong attraction as a destination sees the airline carrying 7.9% more customers to its hub city compared to same period last year.
dnata: Revenue up 5% to AED 7.4 billion (US$ 2.0 billion), profit down 64% to AED 311 million (US$ 85 million), reflecting impact of last year’s one-time transaction. 51.9m meals uplifted, up 67% due to major business expansion.
DUBAI, U.A.E., 8 November 2019: The Emirates Group recently announced its half-year results for its 2019-20 financial year.
Group revenue was AED 53.3 billion (US$ 14.5 billion) for the first six months of 2019-20, down 2% from AED 54.4 billion (US$ 14.8 billion) during the same period last year. This slight revenue decline was mainly due to planned capacity reductions during the 45-day Southern Runway closure at Dubai International airport (DXB), and unfavourable currency movements in Europe, Australia, South Africa, India, and Pakistan.
Profitability was up 8% compared to the same period last year, with the Group reporting a 2019-20 half-year net profit of AED 1.2 billion (US$ 320 million). The profit improvement was primarily due to the decline in fuel prices of 9% compared to the same period last year, however the gain from lower fuel costs were partially offset by negative currency movements.
The Group’s cash position on 30th September 2019 stood at AED 23.0 billion (US$ 6.3 billion), compared to AED 22.2 billion (US$ 6.0 billion) as at 31st March 2019.
His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group
His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group noted: "The Emirates Group delivered a steady and positive performance in the first half of 2019-20, by adapting our strategies to navigate the tough trading conditions and social-political uncertainty in many markets around the world. Both Emirates and dnata worked hard to minimise the impact of the planned runway renovations at DXB on our business and on our customers. We also kept a tight rein on controllable costs and continued to drive efficiency improvement, while ensuring that our resources were deployed nimbly to capitalise on areas of opportunity.
“The lower fuel cost was a welcome respite as we saw our fuel bill drop by AED 2.0 billion compared to the same period last year. However, unfavourable currency movements wiped off approximately AED 1.2 billion from our profits.
“The global outlook is difficult to predict, but we expect the airline and travel industry to continue facing headwinds over the next six months with stiff competition adding downward pressure on margins. As a Group we remain focussed on developing our business, and we will continue to invest in new capabilities that empower our people, and enable us to offer even better products, services, and experiences for our customers.”
The Emirates Group’s employee base remained unchanged compared to 31 March 2019, at an overall average staff count of 105,315. This is in line with the company’s planned capacity and business activities, and also reflects the various internal programmes to improve efficiency through the implementation of new technology and workflows.
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About Emirates
Emirates connects people and places around the globe, inspiring travel and facilitating trade across 158 destinations in 85 countries and territories. On-board its modern and efficient fleet of 268 aircraft, Emirates offers award-winning comfort and service, delivered by friendly cabin crew representing over 130 nationalities. Today, Emirates operates the world’s largest and one of the youngest fleets of the iconic A380 and popular Boeing 777s.
Emirates was the first airline to establish non-stop connectivity between the Middle East and mainland China, launching freighter operations to Shanghai in 2002, followed by passenger services to the city in 2004, Beijing in 2006, Guangzhou in 2008. Today, Emirates operates 35 flights per week to China – twice daily A380 services to Beijing and Shanghai, daily A380 services to Guangzhou. In addition to its passenger services, Emirates operates seven weekly cargo services to Shanghai and three weekly cargo services to Guangzhou.
