May 18, 2017
Emirates 2016-2017 profits fall 82%
Gulf carrier Emirates Airline has reported an 82% fall in profit for the fiscal year 2016-17 to AED 1.3 billion, with a profit margin of 1.5%. Emirates Airline and Group Chairman and Chief Executive, Sheikh Ahmed bin Saeed Al Maktoum, pointed the finger at Brexit, terror attacks and European immigration challenges as principal factors for the drop in profits, describing the fiscal twelve-month period as “one of our most challenging years to date.”
Throughout the year, the Group invested AED13.7 billion in new aircraft and equipment, together with the acquisition of new companies, modern facilities, staff initiatives, and latest technologies, “We remain optimistic for the future of our industry, although we expect the year ahead to remain challenging with hyper competition squeezing airline yields, and volatility in many markets impacting travel flows and demand,” Al Maktoum added.
Emirates’ total passenger and cargo capacity reached 60.5 billion ATKMs at the end of 2016-17, underlining its position as the world’s largest international carrier. The carrier increased capacity during the financial year by 4.1 billion Available Ton Kilometers (ATKMs), or 7% compared to 2015-16.
Emirates took delivery of 35 new aircraft, comprising 19 A380s and 16 Boeing 777-300ERs. At the same time 27 older aircraft were phased out, leaving the carrier with a fleet of 259 aircraft at the end of March. This fleet roll-over involving 62 aircraft was the largest program it has ever managed in a year, reducing Emirates’ average fleet age to 63 months, compared with 74 months last year, and the industry average of 140 months.
Revenue remained stable at AED85.1 billion despite currency devaluations against the U.S. dollar and fare adjustments reflecting the competitive business environment. Compared to 2015-2016, operating costs increased 8% with fuel accounting for 25% of this compared to 26% in 2015-2016.
Emirates carried a record 56.1 million passengers, which was up 8% compared to 2015-2016.
(USD1.00 = AED3.67 at time of publication.)