Emirates Group posts $400m profits

Despite the downturn Emirates Group has posted a year-end profit of $406million (AED 1.49billion) although these figures are down 72% on the year before.

Emirates Airlines contributed $268m in net profit and ground handling arm Dnata added $138m to the group’s net profit figures.

HH Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group said: “We have returned our 21st consecutive year of net profit, and although it is a 72% decrease on the previous year’s all-time record profit, under the circumstances this is a satisfactory result.”

Fuel costs remained the top expenditure for the fifth year running, accounting for an unprecedented 36.2% of airline operating costs compared with 32.9% the previous year.

Sheikh Ahmed added: “No one could have predicted the scale of the worldwide recession which is now impacting every country on earth. Emirates has worked hard to cope with this downturn by maintaining our agility and responsiveness in a volatile economic environment.

“We have met these challenges with determination, improved efficiencies and innovative market-leading initiatives. In 2008-09 financial year, our group achieved two significant milestones: Emirates accepted delivery of its first A380 heralding a new era in our eco-efficient aircraft fleet with Dnata playing a significant role in developing the ground handling processes to manage this pioneering aircraft; and we witnessed the smooth opening of the state-of-the-art Terminal 3 at Dubai International Airport - a remarkable new facility dedicated to Emirates operations, with Dnata overseeing the ramp operations and managing the state of the art baggage system.

HH Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group

“As we move into the new financial year, the outlook is not improving. Although fuel prices are dropping, demand for business and first class traffic is still weak in many markets. Without downplaying the global economic situation and its challenges for our business, I still believe that the coming year will be one of satisfactory growth for the Emirates Group.

“Our development plans remain unchanged. We have weathered the last twelve months with satisfactory growth, maintained the quality of our award-winning service, and maintained staff numbers in the face of an unsettled future. We will continue to forge ahead to build the airline, Dnata and the many subsidiary companies that are part of the Emirates Group,” he said.