Join Date: Jan 2003
Location: Eternal Beach
Try this for a guess...
Not bad for a government corporation?
Emirates declares record-breaking 2004-05 results
The Emirates Group has announced record-breaking net profits of Dhs 2.6 billion (USD708 million) for the financial year ended 31st March 2005 - an impressive Dhs 853 million (USD232 million), or 49 per cent, over the previous year.
United Arab Emirates: 1 hour, 38 minutes ago
Group revenue increased by Dhs 5.1 billion ($1.4 billion) or 36 per cent, to Dhs 19.1 billion ($5.2 billion) vs. Dhs 14 billion ($3.8 billion) last year. The Group's cash balance totaled a robust Dhs 8.2 billion ($2.2 billion) at the end of March, an improvement of 12 per cent vs. Dhs 7.3 billion ($2.0 billion) a year earlier.
For 2004-05 Emirates will pay an increased dividend of Dhs 368 million ($100 million) to its owner, the Government of Dubai, vs. Dhs 329 million ($90 million) last year. In total, the ownership will have received Dhs 1.1 billion ($291 million) from Emirates since dividends started being paid six years ago.
Once again, the Group's sharp sales growth and record returns rode on customers' increasing preference for its products, as illustrated by the 2.1 million more passengers who flew Emirates in the latest financial year, for a new record total of 12.5 million.
The 2004-05 Annual Report of the Emirates Group - comprising Emirates Airline, Dnata and subsidiary companies - was released here today at a news conference hosted by its Chairman, His Highness Sheikh Ahmed bin Saeed Al-Maktoum.
Sheikh Ahmed said: "We've had yet another successful year for the company, and the 17th consecutive profitable one for the airline. Our customers are the pillar of Emirates' good fortune. Their continued custom is a vote of confidence in the high-value product that we constantly strive to give them."
He added: "We are gratified by the strong financial results of the Group. The rapid-growth Emirates business model requires a high rate of return to sustain our enormous investments in people, advanced equipment and facilities, as well as in IT and other support services.
"As before, after paying a fair dividend to the Group's ownership and rewarding our employees with a well-deserved bonus, we will plough our healthy profits right back into the business to keep our airline and travel-related group of companies competitive, and to keep treating our customers in the manner they've come to expect from Emirates."
The Chairman continued: "These results prove once again what has always been clear to us: we can count on our customers to support Emirates, as long as we deliver on our side of the equation - the best aircraft that money can buy, the best ground- and inflight service in commercial aviation, and the best overall flying experience at a competitive price."
In his opening review in the 2004-05 Annual Report, Sheikh Ahmed commented on how the industry, already struggling with continually changing global economic conditions, had been further impacted by a dramatic rise in jet fuel prices. At Emirates, fuel costs rose from 14 per cent of total operating expenditure to 21 per cent and became the airline's top expenditure, from a distant second in 2003-04.
Measures taken by the Group to remain on target included severe cost-cutting steps such as a recruitment freeze - except for Flight Deck, Cabin Crew and Engineering staff. In addition Emirates, like other airlines, also was forced to increase fuel surcharges on tickets, which did not fully cover the escalating costs. The airline's jet fuel risk management programme helped to bring its fuel costs down by $126 million in 2004-05, but the price outlook remains sombre.
Going forward, Sheikh Ahmed described the dramatic and sustained run-up on jet fuel prices as the most formidable challenge faced by Emirates, and the single largest threat to the achievement of the Group's financial goals in the current financial year.
Sheikh Ahmed also commented on how Emirates' robust results were achieved without any government assistance or subsidies, and added: "Since we started the airline in 1985, our competitors seem to find it incomprehensible that we can make profits by having a skilful team which works hard, is a market leader and invests heavily in new equipment - surely the criteria for any successful company?"
In a tribute to the strong leadership of Dubai that has created the conditions under which Emirates has thrived since its inception, Sheikh Ahmed said: "We are indeed fortunate to be based in Dubai, where a visionary government is investing billions of dollars to develop the city into a major commercial, residential and tourist hub, and the Emirates Group is playing a pivotal role."
Emirates Airline's revenues totalled Dhs 18.1 billion ($4.9 billion) for the year, Dhs 4.8 billion ($1.3 billion) or 36 per cent above income of Dhs 13.3 billion ($3.6 billion) in 2003-04. Airline profits of Dhs 2.3 billion ($637 million) were Dhs 766 million ($208 million) or 49 per cent better than last year's profits of Dhs 1.6 billion ($429 million.)
With the addition of nine new aircraft during the financial year, Emirates's fleet count reached 75 at the end of March. Presently it stands at 76, including 70 passenger aircraft and six freighters, with a median age of 4½ years - more than eight years younger than the industry's average of 13.
The first two of 30 Boeing 777-300ERs ordered by Emirates arrived in late March and heralded the start of a new expansion cycle in the airline's huge order programme, which will see another 97 wide-body aircraft being delivered at an average rate of one per month for the next eight years.
Daily passenger operations between Dubai and New York's Kennedy Airport began on 1st June with the long-range Airbus A340-500, following successful freighter operations initiated in September 2003. The airline launched five other destinations in 2004-05 - Shanghai, Glasgow, Vienna, Christchurch and Seychelles - bringing the network total to 76 destinations, five of them cargo-only.
In addition, Emirates increased the frequency of passenger services and/or capacity - with bigger aircraft - to more than a dozen existing destinations, and introduced freighter services to another four. In the process, 75 extra flights per week were added.
Passenger seat factor increased to 74.6 per cent, from 73.4 the year before, while the breakeven load factor decreased once more from an already low 59 per cent in 2003-04, to 58.2. Yield also improved again, for the fourth consecutive year, to 192 fils ($0.52 cents) per RTKM (Revenue Tonne Kilometre) from 181 ($0.49 cents) the previous year.
As part of a vast ongoing expansion programme, new Emirates Lounges opened at Brisbane and Auckland airports, with more in construction or planned at another 13 major airports worldwide, including three in Australia, five in Europe and three in Asia, as well as New York and Nairobi.
In 2004-05 Emirates Airline kept its place among the world's five most profitable carriers and ranked 15th in the world in terms of RPKMs (Revenue Passenger Kilometre). The airline forecasts that its fleet will exceed 150 aircraft by 2012 - including 12 freighters - and anticipates carrying some 33 million passengers by then.
Emirates SkyCargo set a new record with nearly 840,000 tonnes of tonnage carried, up almost 180,000 tonnes or 27 per cent from last year's 660,000. The airline's cargo division's revenue of Dhs 3.4 billion ($940 million) was Dhs 1.0 billion ($282 million) or 43 per cent higher than the year before, and raised its contribution to the carrier's transport revenue from 20- to 21 per cent.
Destination and Leisure Management - another division of Emirates Airline - enjoyed strong revenue improvement of 37 per cent to Dhs 803 million ($219 million), supported by more than 300,000 customers, and six of its destinations experienced especially sharp growth: Singapore, Australia, Switzerland, Austria, Hong Kong and New Zealand. Besides the 100,000 travellers who used Emirates Holidays services, an impressive 200,000 tourists visited the Dubai Desert Conservation Reserve (DDCR) over the latest financial year.
Dnata, 46 years in business and thriving, enjoyed healthy growth throughout the year and record turnovers within its three divisions. Its expansion included the acquisition of CIAS (Changi International Airport Service) in Singapore. With 25 international airline customers, CIAS handles more than 380 flights per week.
Dnata's revenues reached Dhs 1.4 billion ($385 million), Dhs 320 million ($87 million) or 29 per cent above last year's Dhs 1.1 billion ($298 million). Its profits of Dhs 260 million ($71 million) represent an increase of Dhs 87 million ($24 million) or 50 per cent compared to last year's Dhs 174 million ($47 million).
Dnata Airport Operations, as sole operator at Dubai International Airport, handled 22.4 million passengers - 3.3 million more than the year before - and over 186,000 aircraft movements, which represented an increase of 16 per cent. The number of international airlines operating to/from the airport grew to 115 (five more than last year.)
Dnata Agencies, the largest travel agency in the Middle East, had a rewarding year, with a 20 per cent increase in turnover. The company continued to expand outside Dubai, with Dnata Kuwait launched in June, and the establishment of a Dnata World Travel office in the Afghani capital, Kabul, where it was awarded a contract by the United Nations as the sole travel agency catering to all the travel needs of UN personnel there.
Maintaining its position as the leading freight handler in the region, Dnata Cargo handled nearly 458,000 tonnes, an overall growth of 13 per cent. Its Freezone Logistics Centre extension (FLC-III) in construction will enable it to handle an additional 300,000 tonnes of cargo annually.
In his review, Maurice Flanagan, Emirates' Vice Chairman and Group President remarked: "Dnata has been around for as long as there has been an airport in Dubai and it still provides 24/7 dependability for the 100-plus airlines operating to/from the airport.
"The Freezone Logistics Centre at Dubai International Airport has been expanded four times, such is the demand for Dnata's freight services, while Dnata Agencies continues to meet the challenges of e-technology and has exported its sales expertise to Saudi Arabia and Kuwait."
Among the Group's subsidiary companies, Emirates Flight Catering had a stellar performance in 2004-05. It prepared a record 16 million meals for 102 international airlines at Dubai International Airport, with a daily average of 45,000 meals. The operation is capacitised for up to 55,000 daily meals, with a 100 per cent capacity increase being installed, which when ready next year will make it the world's largest facility of its kind.
As of 31st March 2005, the Group employed 25,000 people, up from 22,500 a year before, and had received 240,000 job applications in the preceding 12 months. Employees came from 124 countries. More than 100 nationalities were represented among 5,600 cabin crew, and 60 among the airline's 1,135 captains and first officers - nearly 100 of them UAE nationals.
The Group's Facilities Management Department, whose property portfolio includes 175,000m2 of commercial space in Dubai, presently supervises Dhs 2.5 billion ($681 million) worth of projects underway such as the new Emirates Engineering Centre, the new Group Headquarters building, Crew Training College, Security building, warehousing and several building extensions. It also manages 6,200 villas and apartments mostly dedicated to housing company staff.