"Sorry, we are not able to improve the profit share this year, we had an extraordianry expense of a pilot pay raise"
Emirates posts record full-year profit, reveals interest in more A380s
Friday April 27, 2007
Emirates' star continues to rise, as evidenced by the record AED3.46 billion ($941.8 million) profit the parent company reported for the fiscal year ended March 31, representing a 23.5% increase over the prior year's profit of AED2.8 billion and based largely on the AED3.1 billion in net earnings contributed by the airline.
Emirates Group also includes Dnata and subsidiary companies. "For the third year running, pressure from fuel costs has softened our profits, while the delay on our A380 aircraft deliveries has meant that we have had to revisit our expansion plans," Chairman and CEO Sheikh Ahmed bin Saeed Al-Maktoum said. "In spite of these factors, the Group has continued to forge ahead. . .expanding our operations into new markets and adding capacity to existing markets offering the highest returns, innovating to attract and retain premium customers and keeping a close watch on unit costs."
Group revenue rose 28.4% to AED31.13 billion against a 29.3% lift in expenses to AED27.61 billion. Operating income increased 23.5% to AED3.63 billion. Emirates Airline's profit, up 25.1% from the previous fiscal year's AED2.48 billion, highlighted a period during which operating profit rose 25.9% to AED3.34 billion on a 29.5% gain in revenue to AED29.84 billion and a 30.2% increase in costs to AED26.68 billion. Its operating margin was down 0.3 point to 11.4%.
EK flew 77.95 billion RPKs during the 12 months, up 25.2% from the prior year. Capacity climbed 24.8% to 102.34 billion ASKs and load factor was up 0.3 point to 76.2%. It added 11 aircraft and six destinations and its fleet at year end numbered 102, including six 747 freighters on wet-lease. Overall yield increased 6.5% to AED2.16 and passenger yield rose 5.8%. Cost per ATK was up 6% to AED1.29.
At the carrier's briefing in Dubai yesterday, Al-Maktoum said negotiations with Airbus concerning A380 compensation should be completed next week and EK will be buying more of the type in the future. "We are talking with Airbus about ordering an additional small number of A380s. Maybe we will make an announcement this year," he told ATWOnline, adding that he is confident the first A380 will be delivered in August 2008.
President Tim Clark told this website that the airline "easily could absorb" 5-15 more A380s, while Executive Vice Chairman Maurice Flanagan said the aircraft also would work well in a low-cost business model, which he said the company is considering "a little bit."
Clark expressed excitement about the A350 XWB. Emirates will be looking to replace around 50 aircraft by 2013, including some A330-200s, A340-300s, 777-200s and 777-300s. He said Airbus has added to the A350 "all the things we have asked for," and that the airline hopes to present its choice between the 787 and A350 to Al-Maktoum this summer. It is looking to order 60-100 aircraft and operate a fleet of 161 planes by 2010.
by Kurt Hofmann and Brian Straus