Emirates Group breaks record with 2010 net profit

Latest results mark the 23rd consecutive year of profits for group.
Emirates chairman Sheikh Ahmed presented the results in Dubai
Emirates chairman Sheikh Ahmed presented the results in Dubai

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Emirates Group has published its 2010-11 annual report, which highlights the 23rd consecutive year of profits for Emirates Airline, dnata and their subsidiary companies, with a record net profit of US$1.6 billion. The results were announced at a news conference in Dubai this month, hosted by His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of 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,” said Sheikh Ahmed. “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.”

The 2010-11 annual report reflects on many of the group’s successes that have ensured its continued profitability. Emirates Airline’s revenues grew by 25 percent from last year to reach $14.8 billion. Airline profits of $1.5 billion marked an increase of 51.9 percent over 2009-10. Passenger seat factor, at 80 percent, indicates the airline’s highest ever, a remarkable achievement given a substantial increase in available seat kilometres (ASKMs) of 13 percent.

Emirates significantly increased its order for new aircraft during the year, adding 32 additional Airbus A380s and 30 Boeing 777-300ERs. The combined value of these orders is $13.4 billion and brings the airline’s total number of aircraft on order at the end of the financial year to 193, worth over $66 billion. The carrier took delivery of eight new aircraft during the year, including one Boeing 777-300ER and seven flagship A380s, expanding the fleet size to a robust 148 aircraft.

Passenger services were launched to six new destinations – Amsterdam, Prague, Al Medinah al Munawarah, Madrid, Dakar and Basra – while frequency and capacity was increased to a number of high-demand cities.

Emirates SkyCargo saw a strong increase in revenue up 27.6 percent to a record $2.4 billion thanks to a worldwide rebound in cargo traffic. Cargo tonnage increased by 11.8 percent over the previous year to 1,767,000 tonnes. During the year, Emirates SkyCargo introduced four freighter-only destinations, Almaty, Bagram, Campinas and Erbil. At the end of the financial year, the freighter fleet was seven – three on wet lease and four on operating lease.

The Destination and Leisure Management (D&LM) division saw package sales of $299.7 million throughout the financial year, an increase of 10 percent on last year’s figures, while dnata’s revenue, driven by international expansion, was $1.2 billion, up 39.4 percent from last year.

“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. “Looking ahead we have no plans to deviate from our proven strategy of investing in our business and focusing on core customer service. As we continue to grow, we are ambitious enough to believe that we can stimulate change in the aero political arena, for the benefit of the industry and the customers that it serves.”

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