Emirates Airline records profit of USD 288m for 2019-20
- A Monitor Desk Report 10 May, 2020 | 761 Views|-+
Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group
Dhaka: State-owned Emirates Airline has reported a profit of USD 288 million for the year ended on March 31, 2020, which is 21 per cent up from the previous year. During the same period Emirates Group comprising Emirates Airline, dnata and their subsidiaries posted a profit of USD 456 million, down by 28 per cent from last year.
The Emirates Group on May 10 released its 2019-20 Annual Report in Dubai. The Group announced its 32nd consecutive year of profit, against a 5 per cent drop in revenue mainly attributed to reduced operations during the planned DXB runway closure in the first quarter and the impact of flight and travel restrictions due to the COVID-19 pandemic in the fourth quarter. The group’s revenue has reached USD 28.3 billion.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said, “For the first 11 months of 2019-20, Emirates and dnata were performing strongly, and we were on track to deliver against our business targets. However, from mid-February things changed rapidly as the COVID-19 pandemic swept across the world, causing a sudden and tremendous drop in demand for international air travel as countries closed their borders and imposed stringent travel restrictions.”
Commenting on the COVID-19 pandemic, he said that it would have a huge impact on the 2020-21 performance of the company. “We expect it will take 18 months at least, before travel demand returns to a semblance of normality.”
Though Emirates’ profit increased over the past year but its total passenger and cargo capacity declined by 8 per cent at the end of 2019-20, due to the Dubai Airport runway closure capacity restrictions and COVID-19 impact with a complete suspension of passenger services as directed by the UAE government during March 2020.
While Emirates recorded a very strong revenue performance during its 2nd and 3rd quarters of 2019-20, the DXB runway closure and COVID-19 crisis in the other quarters impacted its total revenue for the financial year with a decline of 6 per cent to USD 25.1 billion. The relative strengthening of the US dollar against currencies in many of Emirates’ key markets had a USD 262 million negative impact to the airline’s bottom line. Emirates SkyCargo freighter division of Emirates contributed to 13 per cent of the airline’s total transport revenue.
Emirates closed the financial year with a healthy level of USD 5.5 billion of cash assets.
Overall passenger traffic declined, as Emirates carried 56.2 million passengers (down 4pc). With seat capacity down by 6 per cent, the airline achieved a Passenger Seat Factor of 78.5 per cent.
For 2019-20, dnata recorded a sharp profit decline (57pc) to USD 168 million, though the total revenue grew to USD 4.0 billion, up 2 per cent. This reflects its continued business growth particularly in its catering division, and strong customer retention and new contract wins across its four divisions. dnata’s international business now accounts for 72 per cent of its revenue.
Across its more than 120 subsidiaries, the group’s total workforce remained nearly unchanged with 105,730 employees, representing over 160 different nationalities.