Emirates posts USD235 million net profit during first half-year
- A Monitor Report 07 Nov, 2019 | 959 Views|-+
Dhaka: The Emirates Group comprising Emirates airline and dnata among others announced today, November 7, the half-year results for its 2019-20 financial year ending on September 30, 2019.
In the first half of the 2019-20 financial year, Emirates net profit was USD 235 million, up 282 per cent, compared to last year. Though, Emirates revenue, including other operating income, of USD 12.9 billion was down three per cent.
The result was driven by increased agility in capacity deployment, with healthy customer demand for Emirates’ products driving improved seat load factors and better margins.
Emirates Group revenue was USD 14.5 billion for the first six months of 2019-20, down two per cent from during the same period last year. This slight revenue decline was mainly due to planned capacity reductions during the 45-day Southern Runway closure at Dubai International airport (DXB) and unfavourable currency movements in Europe, Australia, South Africa, India, and Pakistan.
Group’s Profitability was up eight per cent compared to the same period last year, with the Group reporting a 2019-20 half-year net profit of USD 320 million. The profit improvement was primarily due to the decline in fuel prices of 9 per cent compared to the same period last year, however the gain from lower fuel costs were partially offset by negative currency movements.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group said, “The global outlook is difficult to predict, but we expect the airline and travel industry to continue facing headwinds over the next six months with stiff competition adding downward pressure on margins. As a Group we remain focused on developing our business, and we will continue to invest in new capabilities that empower our people, and enable us to offer even better products, services, and experiences for our customers.”
Emirates carried 29.6 million passengers between April 1 and September 30, 2019. Passenger Seat Factor rose to 81.1 per cent, compared with last year’s 78.8 per cent. The volume of cargo uplifted at 1.2 million tonnes has decreased by eight per cent while yield declined by three per cent. This reflects the tough business environment for air freight in the context of global trade tensions and unrest in some key cargo markets.
dnata’s revenue, including other operating income, was USD 2.0 billion, a five per cent increase compared to last year. Overall profit for dnata was down by 64 per cent to USD 85 million, compared to last year’s result. dnata continued to strengthen its global capabilities in ground handling, catering and travel services, with operations spanning over 35 countries.
The Emirates Group’s employee base remained unchanged compared to March 31, 2019, at overall average staff counts of 105,315.