Emirates Group pushes aviation boundaries

The Emirates Group has marked its 23rd consecutive year of profit with a record performance of AED 5.9 billion (US$ 1.6 billion) net profit, despite a challenging business climate.

The 2010-11 Annual Report of the Emirates Group - comprising Emirates Airline, dnata and their subsidiary companies - was released in Dubai on Tuesday at a news conference hosted by His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.

"This year's record results represent our drive to push the boundaries of aviation, questioning the norms and advocating for open and fair competition. Despite unforeseen challenges in the form of political instability and shocking natural disasters we have managed, through sheer determination, nimbleness and quick thinking, to produce our best ever result," said Sheikh Ahmed.

financial performance

In the face of many challenges, both political and environmental, the Group's revenue increased by 26.4 percent reaching a remarkable new level at AED 57.4 billion (US$ 15.6 billion). Strong revenue has been the main driver for the Group's record financial performance. The Group's cash balance rose substantially to hit a record high at AED 16 billion (US$ 4.4 billion).

The Group's exceptional performance this year owes much to its dexterity and ability to adapt to changing market conditions quickly. In the first six months Emirates was able to capitalise on strong market demand thanks to its superior network and world-class product.

With political instability across parts of the world coming to the fore in the second half of the year, Emirates was able to swiftly adjust flight schedules, redeploying aircraft to balance the network and optimise revenue. The airline's notable ability to drive revenue, in the midst of an unstable business environment enabled it to partially shield itself against a dramatic increase in fuel prices in the second half of the year.

During the year dnata forged forward with its international expansion through its proven strategy of acquisition, taking ownership of Alpha Flight Group Ltd, a leading caterer with operations in 61 airports globally. By being open to new business opportunities and continually seeking growth dnata has now become the world's fourth largest air services provider.

Strong workforce

"A clear indication of our strength, this year's financial result represents the tireless work of our 57,000 strong workforce. Operating without subsidy and through a well thought out business model we have, as a team, been able to confront adversity on many levels," added Sheikh Ahmed. Customers' continued preference for Emirates' products has helped achieve sharp sales growth, record return for the financial year and the airline's highest ever passenger numbers. "Emirates continues to dismiss the perceived limitations of the aviation industry, advocating for an open skies environment that stimulates competition, an undeniable positive for the customer.

The customer is at the heart of our operations, evident in the 31.4 million passengers that flew with us throughout the financial year, an increase of 14.5 percent or 4 million passengers on last year."

On course with its financial commitments a net amount of AED 1.8 billion (US$ 500 million) was used to repay a bond that matured on 24th March 2011. The bond, listed on the Luxembourg Stock Exchange, was originally issued in 2004 with a seven year term.

Focusing on the theme of 'open' the 2010-11 Emirates Group Annual Report reflects on many of the Group's successes that have ensured its continued profitability.

"Being open to competition, new ideas and most importantly the future, ensures that we stay ahead of the game. Knowing that we continue to delight our customers and motivate our employees is a true measure of our success," continued Sheikh Ahmed.