Emirates has achieved its 28th consecutive year of record profits and business expansion despite operating in a challenging environment.
The company’s latest financial report revealed a 50 percent increase in profit for the year ending 31 March 2016 to US$2.2 billion, while its revenue reached US$25.3 billion, a drop of three percent compared to the prior 12 months.
According to Emirates’ Chief Executive and Chairman, His Highness (H.H.) Sheikh Ahmed bin Saeed Al Maktoum, solid business results came regardless of “an uncertain global economic environment dogged by weak consumer and investor sentiment”.
“The Group’s performance is a testament to the success of our business model and strategies.”
Sheikh Ahmed bin Saeed Al Maktoum, Emirates Chief Executive
Some 51.9 million passengers were carried by the carrier over the 12 months, a rise of eight percent. The extra bodies were managed through the introduction of 29 new aircraft, including 16 A380s, 12 Boeing 777-300ERs and one Boeing 777F.
While the airline welcomed more passengers, its seat factor fell from 79.6 percent to 76.5 percent due to strong competition and economic uncertainty.
Emirates’ spending over the 12 months also fell slightly by eight percent thanks to the drop in jet fuel costs, which saw the airline spend 31 percent less on fuel than the prior year.
Looking ahead, Sheikh Ahmed bin Saeed Al Maktoum believes oil prices will act as a “double-edged sword” whereby it will be “a boon for our operating costs, but a bane for global business and consumer confidence.”
The strong US dollar is also expected to to remain a challenge for the carrier as will the “looming threat of protectionism in some countries”.
“However, we enter the new financial year with confidence, backed by a robust balance sheet, solid track record, diverse global portfolio, and international talent pool.”
Sheikh Ahmed bin Saeed Al Maktoum, Emirates Chief Executive
“We will continue to evolve and grow our business profitably, and work even harder to meet and exceed our customers’ expectations.”
