Emirates Group Announces 2017-18 Results
Emirates Group information 30th consecutive 12 months of revenue of AED 4.1 billion (US$ 1.1 billion)
- Strong enterprise development consistent with capability will increase resulting in a file income of greater than AED 100 billion (US$ 27.2 billion) for the first time
- Improved money steadiness of AED 25.Four billion (US$ 6.9 billion)
- Declares a dividend of AED 2.Zero billion (US$ 545 million) to the Funding Company of Dubai
Emirates Group Outcomes 2017-18
Emirates studies a revenue of AED 2.Eight billion (US$ 762 million), 124% higher than the earlier 12 months
- Airline capability crosses 61 billion ATKM with a internet addition of 9 new plane to the fleet
- Income will increase by 9% to AED 92.Three billion (US$ 25.2 billion), supported by robust cargo efficiency
dnata makes highest revenue ever, at AED 1.Three billion (US$ 359 million)
- Report income of AED 13.1 billion (US$ 3.6 billion) displays additional enterprise enlargement, with worldwide enterprise now accounting for 68% of income
- Expands international footprint with floor dealing with acquisitions within the Americas, provides new amenities and repair capabilities throughout its airport operations, catering, and journey providers divisions
DUBAI, UAE, 9 Might 2018 – The Emirates Group in the present day introduced its 30th consecutive 12 months of revenue and regular enterprise enlargement.
Launched in the present day in its 2017-18 Annual Report, the Emirates Group posted a revenue of AED 4.1 billion (US$ 1.1 billion) for the monetary 12 months ended 31 March 2018, up 67% from final 12 months. The Group’s income reached AED 102.Four billion (US$ 27.9.billion), a rise of 8% over final 12 months’s outcomes, and the Group’s money steadiness elevated by 33% to AED 25.Four billion (US$ 6.9 billion) supported by the bond issued in March and robust gross sales as a result of early Easter holidays on the finish of March.
In keeping with the general revenue, the Group declared a dividend of AED 2.Zero billion (US$ 545 million) to the Funding Company of Dubai.
His Highness (H.H.) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Govt, Emirates Airline and Group, stated:
“Enterprise situations in 2017-18, whereas improved, remained powerful. We noticed ongoing political instability, forex volatility and devaluations in Africa, rising oil costs which drove our prices up, and downward stress on margins from relentless competitors. On the constructive aspect, we benefitted from a wholesome restoration within the international air cargo trade, in addition to the relative strengthening of key currencies in opposition to the US greenback.
“We’ve all the time responded to the challenges of every enterprise cycle with agility, whereas by no means dropping sight of the long run, and this 12 months was no exception. In 2017-18, Emirates and dnata delivered our 30th consecutive 12 months of revenue, recorded development throughout the enterprise, and continued to put money into initiatives and infrastructure that can safe our future success.”
In 2017-18, the Group collectively invested AED 9.Zero billion (US$ 2.5 billion) in new plane and tools, the acquisition of firms, fashionable amenities, the newest applied sciences, and workers initiatives.
Emirates introduced two vital commitments for brand spanking new plane throughout the 12 months: a US$ 15.1 billion settlement for 40 Boeing 787-10 Dreamliners which will likely be delivered from 2022, and a US$ 16 billion settlement for 36 further A380 plane, together with 16 choices.
dnata’s key investments throughout the 12 months included: acquisition of AirLogistix USA, marking its entry within the US cargo market; enlargement of cargo dealing with capabilities with new warehouses and tools at London Gatwick, Amsterdam-Schiphol, and Adelaide; new catering amenities in Dublin and Melbourne; and new marhaba lounges in Karachi and Melbourne.
Sheikh Ahmed stated:
“Whereas increasing our enterprise and rising revenues, we additionally tightened our value self-discipline. Throughout the Group, we progressed varied initiatives to rebuild and streamline our again workplace operations with new know-how, programs and processes. In 2017-18, our diminished recruitment exercise, coupled with restructured methods of working gave us positive factors in productiveness, and a slowdown in manpower value will increase.”
Throughout its greater than 80 subsidiaries, the Group’s complete workforce declined by 2% to 103,363, representing over 160 totally different nationalities, as a part of the general productiveness enchancment initiatives in Emirates and dnata.
Sheikh Ahmed concluded:
“Wanting forward, Emirates and dnata stay focussed on delivering protected, environment friendly and prime quality providers persistently to our clients. Our ongoing investments in our individuals, know-how, and infrastructure will assist us preserve our aggressive edge, and be sure that we’re prepared to fulfill the alternatives and keep heading in the right direction for sustainable and worthwhile development.”
Emirates’ complete passenger and cargo capability crossed the 61 billion mark, to 61.Four billion ATKMs on the finish of 2017-18, cementing its place because the world’s largest worldwide provider. The airline reasonably elevated capability throughout the 12 months over 2016-17 by 2%, with a concentrate on yield enchancment.
Emirates obtained 17 new plane, after final 12 months’s file quantity throughout a monetary 12 months, comprising of eight A380s and 9 Boeing 777-300ERs. On the identical time, eight older plane have been phased out, bringing its complete fleet depend to 268 on the finish of March. This fleet roll-over involving 25 plane was once more one of many largest managed in a 12 months, retaining Emirates’ common fleet age at a youthful 5.7 years.
It underscores Emirates’ technique to function a younger and fashionable fleet which is best for the surroundings, higher for operations, and higher for purchasers. The airline stays the world’s largest operator of the Boeing 777 and A380 – each plane being amongst essentially the most fashionable and environment friendly wide-bodied jets within the sky in the present day.
In the course of the 12 months, Emirates launched two new passenger locations: Phnom Penh (Cambodia) and Zagreb (Croatia). It additionally added flight capability to 15 present locations, providing clients extra selection of flight timings and onward connections.
Emirates additionally grew its international connectivity and buyer proposition by way of strategic partnerships. Throughout 2017-18, Emirates entered into vital partnerships with flydubai and Cargolux, increasing the selection of air providers on provide to passenger and cargo clients respectively. Emirates additionally obtained authorisation to increase its partnership with Qantas till 2023.
Despite political challenges impacting traveller demand and fare changes on account of a extremely aggressive enterprise surroundings, Emirates managed to extend its income to AED 92.Three billion (US$ 25.2 billion). The decline of the US greenback in opposition to currencies in most of Emirates’ key markets for the primary time in various years had an AED 661 million (US$ 180 million) constructive influence to the airline’s backside line.
Complete working prices elevated by 7% over the 2016-17 monetary 12 months. The common value of jet gas elevated sharply by 15% throughout the monetary 12 months. Together with a 3% greater uplift consistent with capability enhance, the airline’s gas invoice elevated considerably by 18% over final 12 months to AED 24.7 billion (US$ 6.7 billion). Gasoline is now 28% of working prices, in comparison with 25% in 2016-17, and it remained the most important value part for the airline.
The airline efficiently managed robust aggressive stress throughout all markets and elevated its revenue to AED 2.Eight billion (US$ 762 million), a rise of 124% over final 12 months’s outcomes, and a revenue margin of three.0%.
Total passenger site visitors development continues to display the patron need to fly on Emirates’ state-of-the-art plane, and through environment friendly routings by way of its Dubai hub.
Emirates carried a file 58.5 million passengers (up 4%), and achieved a Passenger Seat Issue of 77.5%. The rise in passenger seat issue in comparison with final 12 months’s 75.1%, is a results of profitable capability administration in response to political uncertainty and robust competitors in lots of markets regardless of a reasonable 2% enhance in seat capability.
Supported by the weakening of the USD in opposition to most currencies, passenger yield elevated to 25.3 fils (6.9 US cents) per Income Passenger Kilometre (RPKM).
To fund its fleet development throughout the 12 months with excessive ongoing new plane deliveries, Emirates raised AED 17.9 billion (US$ 4.9 billion), utilizing a wide range of financing constructions, together with the profitable execution of a US$ 600 million sukuk in March to fund the acquisition of two A380 plane to be delivered in 2018.
Emirates continues to faucet the Japanese structured finance market along with debt from a wide-ranging group of establishments in China, France, the UK, and Japan. The corporate raised in extra of AED 3.7 billion (US$ 1 billion) throughout the 12 months from this supply. Emirates has additionally refinanced a business bridge facility (on account of non-availability of ECA cowl) of AED 3.Eight billion (US$ 1.Zero billion) through an progressive finance lease construction for 5 A380-800 plane, accessing an institutional investor and financial institution market base from Korea, Germany, the UK and the Center East.
These offers align with Emirates’ financing technique and demonstrates its capability to unlock numerous financing sources by way of entry to international liquidity. It additionally underscores its sound financials and the robust investor confidence within the airline’s enterprise mannequin.
Emirates closed the monetary 12 months with a wholesome and elevated stage of AED 20.Four billion (US$ 5.6 billion) of money belongings.
Income generated from throughout Emirates’ six areas continues to be nicely balanced, with no area contributing greater than 30% of general revenues. Europe was the very best income contributing area with AED 26.7 billion (US$ 7.3 billion), up 12% from 2016-17. East Asia and Australasia follows carefully with AED 25.Four billion (US$ 6.9 billion), up 12%. The Americas area recorded income development at AED 13.Four billion (US$ 3.7 billion), up 7%. Gulf and Center East income decreased by 2% to AED 8.5 billion (US$ 2.Three billion) whereas income for Africa elevated by 8% to AED 9.4 billion (US$ 2.6 billion). West Asia and Indian Ocean income elevated by 5% to AED 7.Eight billion (US$ 2.1 billion).
Via the 12 months, Emirates launched product and repair enhancements on board and on the bottom.
Key highlights embody: the launch of fully-enclosed suites in First Class along with refreshed Enterprise Class and Financial system Class cabins on the 777-300ER plane; new, wider Enterprise Class seats organized in a 2-2-2 structure on the 777-200LR plane; and a refreshed model of the favored Onboard Lounge on the Emirates A380.
On the bottom, Emirates added a brand new devoted lounge in Boston for its premium passengers and frequent flyers; refurbished present lounges in Singapore and Bangkok, and accomplished a US$ 11 million makeover of its lounges in Dubai airport Concourse B.
Emirates additionally invested in new channels and know-how to supply even higher and extra personalised buyer experiences on-line, on cellular, in addition to through its retail and speak to centres.
For 2018-19, Emirates has introduced new routes to London Stansted within the UK, Santiago in Chile, Edinburgh in Scotland, and a further flight between Dubai and Auckland through Bali, apart from capability upgrades to present locations.
Emirates SkyCargo recorded a robust efficiency in a resurgent market, and continues to play an integral function within the firm’s increasing operations, contributing 14% of the airline’s complete transport income.
In an airfreight market with fast-changing demand patterns, Emirates’ cargo division reported a income of AED 12.Four billion (US$ 3.Four billion), a powerful enhance of 17% over final 12 months, whereas tonnage carried barely elevated by 2% to achieve 2.6 million tonnes.
This 12 months, freight yield per Freight Tonne Kilometre (FTKM) elevated by 14%, reflecting a really constructive market surroundings for the trade, and the weakening of the USD in opposition to main currencies.
Emirates’ SkyCargo’s complete freighter fleet stood at 13 Boeing 777Fs. Along with belly-hold capability to Emirates’ new passenger locations, Emirates SkyCargo launched new freighter providers to Maastricht (Netherlands), Luxembourg, and Aguadilla (Puerto Rico).
Emirates SkyCargo continued to develop progressive, bespoke merchandise tailor-made to key trade sectors. In November, it signed an MoU with Dubai CommerCity to develop new options for the e-commerce sector utilizing Dubai as a hub.
In the course of the 12 months, Emirates SkyCargo launched Emirates Contemporary for perishable commodities corresponding to contemporary lower flowers, vegatables and fruits. For temperature-sensitive Pharma merchandise, Emirates SkyCargo rolled out a pharma corridors programme to supply enhanced origin-to-destination safety, and it additionally partnered with DuPont to introduce White Cowl Xtreme, a subsequent era thermal blanket to guard delicate cargo.
Emirates’ lodges recorded income of AED 746 million (US$ 203 million), a reasonable enhance of 1% over final 12 months in a extremely aggressive market primarily within the UAE.
In its 59 years of operation, 2017-18 has been dnata’s most worthwhile 12 months, crossing AED 1.Three billion (US$ 359 million) revenue for the primary time. Constructing on its robust ends in the earlier 12 months, dnata’s income grew to AED 13.1 billion (US$ 3.6 billion), up 7%. dnata’s worldwide enterprise now accounts for 68% of its income.
The robust efficiency was achieved by way of natural development with key contract wins coupled with strong buyer retention throughout its 4 enterprise divisions, in addition to the influence of acquisitions from earlier 12 months.
dnata continued to put the foundations for future development by investing AED 600 million in new amenities and tools, acquisitions, modern applied sciences and folks growth.
One in all its key initiatives in 2017-18 was to embark on the journey to implement a brand new Enterprise Useful resource Planning (ERP) answer that can remodel its enterprise assist features, and supply actual time data to allow higher resolution making, governance, effectivity and scalability for continued development and enlargement.
In 2017-18, dnata’s working prices elevated accordingly by 8% to AED 11.9 billion (US$ 3.2 billion), reflecting the influence of natural development throughout all strains of enterprise coupled with integrating the newly acquired firms primarily throughout its worldwide airport operations.
dnata’s money steadiness reached AED 4.9 billion (US$ 1.Three billion), a brand new file excessive. The enterprise delivered an AED 1.9 billion (US$ 506 million) money circulation from working actions in 2017-18, which can be a brand new file consistent with the improved money steadiness.
Income from dnata’s UAE Airport Operations, together with floor and cargo dealing with elevated by 4% to achieve AED 3.2 billion (US$ 859 million).
The variety of plane actions dealt with by dnata within the UAE declined by 2% to 211,000 impacted by the geopolitical state of affairs within the area, whereas Cargo dealing with elevated by 2% to 731,000 tonnes, supported by the robust general air cargo market.
Along with the regular supply of initiatives began in 2014 to optimise its operations, protecting facility enhancements, course of modifications, infrastructure upgrades and IT growth, dnata additionally efficiently examined using blockchain know-how to additional streamline and simplify its cargo supply processes from origin to closing vacation spot.
dnata’s Worldwide Airport Operations division grew income by 14% to AED 3.Eight billion (US$ 1.Zero billion), on account of rising enterprise volumes, opening of recent places and profitable new contracts.
Worldwide airport operations proceed to characterize the most important enterprise section in dnata by income contribution. The variety of plane dealt with by the division additional elevated considerably by 10% to 449,000, and Cargo famous a considerable development of 10% to 2.Four million tonnes of dealt with items.
dnata continued to win over clients with its prime quality requirements, inking over 90 contracts with new and present clients throughout the 12 months.
In the course of the 12 months, dnata made vital investments which expanded its functionality and international presence. In Might, dnata entered the US cargo market with its acquisition of AirLogistix USA. The funding consists of state-of-the-art cargo dealing with amenities in Houston and Dallas Fort-Value. dnata additionally expanded its cargo dealing with capabilities at Gatwick, opened a further cargo warehouse in Schiphol, and a brand new airside cargo facility in Adelaide.
Within the US, it obtained a brand new licence to supply floor dealing with providers at John F. Kennedy Worldwide Airport’s (JFK) Terminal 4; and it commenced operations at JFK’s Terminal 8. In Singapore, dnata started operations at Singapore Changi Airport’s new Terminal 4; and opened a brand new upkeep base for floor service tools.
dnata’s Catering enterprise accounted for AED 2.1 billion (US$ 585 million) of its complete income, up 7%. The inflight catering enterprise uplifted greater than 55 million meals to airline clients.
In the course of the 12 months, dnata opened a state-of-the-art catering hub at Melbourne airport, the most important such facility within the southern hemisphere, and a second catering facility in Eire at Dublin airport. It additionally entered the Canadian market when it was awarded a licence to supply flight catering providers to airways departing Vancouver Worldwide Airport, and has commenced plans to construct a devoted catering facility there.
dnata strengthened its presence within the North American market with the acquisition of 121 in-flight catering, a New York-based in-flight and VIP caterer in March. That is pending approval from the Committee of Overseas Investments in the US (CFIUS). In April 2018, dnata introduced the acquisition of Qantas’ catering enterprise, topic to the approval of the Australian Competitors and Client Fee.
Income from dnata’s Journey Providers division has seen a turnaround after final 12 months’s decline with a rise of 8% to AED 3.Four billion (US$ 922 million). The underlying complete transaction worth (TTV) of journey providers offered elevated by 6% to AED 11.Three billion (US$ 3.1 billion).
This strong efficiency was supported by dnata’s capability to faucet on the upswing in each inbound and outbound tourism demand within the Center East, and a wholesome enhance in long-haul journey and cruise bookings in Europe and Australia.
In 2017-18, dnata accomplished its acquisition of a stake in Vacation spot Asia, a number one vacation spot administration firm with operations throughout 11 Asian nations, making its entry into South East Asia’s inbound journey market. Its UK-based Think about Cruising enterprise, accomplished a profitable first 12 months of buying and selling in Australia, and bought Vacation Planet, a number one journey firm in Perth to spice up development on this market.
In the course of the 12 months, dnata invested in know-how to supply enhanced performance and a greater service expertise for its companions and clients. This included the creation of two journey reservation programs for Emirates Holidays and dnata Journey’s B2B enterprise, to interchange present ones.
The complete 2017-18 Annual Report of the Emirates Group – comprising Emirates, dnata and their subsidiaries – is out there at: www.theemiratesgroup.com/annualreport
Additionally Learn : Google to Develop Lookout App for Visually Impaired Individuals