Emirates Group Marks Record Profit Increase in 2009-2010

DUBAI, United Arab Emirates, May 12 /PRNewswire/ -- The Emirates Group has reported a record profit increase of 248 percent, an outstanding result in a year fraught with worldwide market instability and economic uncertainty.

The 2009-10 Annual Report of the Emirates Group - comprising Emirates airline, Dnata and their subsidiary companies – was released in Dubai today at a news conference hosted by His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.

Sheikh Ahmed said, "It has been an exceptional year of continued profitability against a backdrop of the worst global recession in generations. The first half of the financial year however, was extremely challenging as the world continued to grapple with the economic crisis. Our pioneering spirit and ability to adapt in adverse conditions helped us to push through this harsh economic climate with an extremely strong performance in the latter part of the year."

Emirates Group net profits increased to US $1.1 billion for the financial year, which ended March 31, 2010. Group revenue remained stable at US $12.4 billion reflecting lower passenger and cargo yields offset by increased traffic. Profit margin improved to 9.1 percent from 2.6 percent a year earlier.

In conjunction, Group cash balance also grew to US $3.4 billion at the end of March, a remarkable improvement of 43.3 percent or US $1 billion against the previous year. This excellent result is also after US $931 million of investments mainly in new aircraft; other aircraft related equipment and dedicated lounges.

Emirates' outstanding performance this year reflects its success in maintaining its business as usual approach, remaining true to its strategy of product and service excellence. This is illustrated by the 27.5 million passengers who flew with Emirates in the latest financial year, a 21 percent increase with 4.7 million more passengers than in the previous year; as well as the expansion of Dnata's international ground handling operations to 20 airports in nine countries.

In his opening review in the 2009-10 Annual Report, Sheikh Ahmed highlighted the Group's ability to flourish in adversity, despite the International Air Transport Association (IATA) reporting that airlines' financial losses worldwide for 2009 reached US $9.4 billion – the most difficult situation ever faced by the industry.

He also remarked on some of the many significant milestones for the Group that have helped ensure its continued growth and success which included Dnata's overseas expansion strategy through business acquisitions; Emirates' addition of 15 new aircraft; the celebration of Dnata's 50th year of operations; the opening of Wolgan Valley Resort and Spa in Australia – one of the world's leading sustainable hotels and Emirates' A380 route network expansion to several new airports including Seoul, Bangkok, Toronto, Paris and Jeddah.

"Emirates is incredibly proud of the fact that we are unsubsidized and wholly unprotected from foreign competition in our home market, thanks to Dubai's progressive open skies policy.  We continue to grow, not through protectionism but through competition. It is our drive and determination to succeed that has helped us to earn our solid reputation worldwide and we have no intentions of pulling back the reigns on our expansion plans to suit the needs of our competition."

Sheikh Ahmed concluded, "In a year of global ups and downs our determination to stand by our tradition of innovation has been one of our greatest achievements. The other is our ability to retain our talented staff. With 50,000 employees worldwide our staff is our greatest asset and we are committed to retaining each and every one of them. It is their passion and dedication that has helped to shape our company and it is this passion that will see the company continue to forge ahead." 

The full 2009-10 Annual Report of the Emirates Group – comprising Emirates Airline, Dnata and their subsidiary companies – is available on www.ekgroup.com/mediacentre

About Emirates

Emirates currently serves 102 cities around the globe with a young and technologically advanced fleet of 141 wide-bodied aircraft that are equipped with industry-leading comforts in the air. Additionally, Emirates has 151 wide-bodied aircraft on order, worth over US $50 billion, and is the leading customer of the Airbus A380 with eight in its fleet and 50 on order. The Boston Consulting Group (BCG) recently named Emirates to its exclusive "2009 Global Challenger" list, while Fast Company Magazine picked the airline as one of the 50 "Most Innovative Companies" in the world. Operations on Emirates from New York, Houston, Los Angeles and San Francisco connect America to the world through the airline's route network with extensive connections from Dubai to the Far East, Australia and Africa. For more information, visit www.emirates.com/usa    

SOURCE Emirates Group