EK Financial results - first half
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EK Financial results - first half
November 16, 2004
Dubai airline Emirates said on Tuesday its profit surged 41 percent to 865 million dirhams (USD$236 million) in the first half of its financial year.
"Strong passenger and cargo demand coupled with better yields helped to offset higher costs due to escalating jet fuel prices," a company statement said.
Profit for the first six months to end-September last year stood at 612 million dirhams.
Passengers carried rose 25.5 percent to 6.1 million, while cargo revenue climbed 42 percent on a 27 percent increase of tonnage to 401,500 tonnes.
Operating revenue rose to USD$2.2 billion in the first half of this year, from USD$1.6 billion during the same period last year.
Liquidity on September 30 was USD$1.70 billion, down from USD$1.76 billion six months earlier after paying dividends to the carrier's owners, the government of Dubai, one of the seven emirates that make up the United Arab Emirates federation.
Liquidity was also affected by funding capital outflows of around USD$136 million, the statement said.
It said services to Seychelles, Seoul, Hamburg and Geneva would start in 2005, making a total of 81 destinations. Emirates says it has USD$30.3 billion of new aircraft on order.
(Reuters)
Dubai airline Emirates said on Tuesday its profit surged 41 percent to 865 million dirhams (USD$236 million) in the first half of its financial year.
"Strong passenger and cargo demand coupled with better yields helped to offset higher costs due to escalating jet fuel prices," a company statement said.
Profit for the first six months to end-September last year stood at 612 million dirhams.
Passengers carried rose 25.5 percent to 6.1 million, while cargo revenue climbed 42 percent on a 27 percent increase of tonnage to 401,500 tonnes.
Operating revenue rose to USD$2.2 billion in the first half of this year, from USD$1.6 billion during the same period last year.
Liquidity on September 30 was USD$1.70 billion, down from USD$1.76 billion six months earlier after paying dividends to the carrier's owners, the government of Dubai, one of the seven emirates that make up the United Arab Emirates federation.
Liquidity was also affected by funding capital outflows of around USD$136 million, the statement said.
It said services to Seychelles, Seoul, Hamburg and Geneva would start in 2005, making a total of 81 destinations. Emirates says it has USD$30.3 billion of new aircraft on order.
(Reuters)
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Is it just me, or do things somehow just do not add up logically? For example, pax up by 25.5%, revenues up by 37.5% which seems to indicate an increase in yields, while having so many competitors like QR and EY all around dropping and trashing the yields substancially in the region, while at the same time, profits are up 41% when the cost of fuel has increased by no less than 60% in the past year. Does anyone have any thoughts on this? Could this be a reason why the AF/KL CEO challenge EK to open its books?
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Actually Studi, EK financials have been available for public viewing through a major accounting firm for many years now. And we buy fuel through the same companies as everyone else.
Why so sceptical? There is no mystery - more bums on more seats under which travels more cargo, with a tight reign on costs. We are a low (operating) cost airline with a three cabin, five star product.
Why so sceptical? There is no mystery - more bums on more seats under which travels more cargo, with a tight reign on costs. We are a low (operating) cost airline with a three cabin, five star product.
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Is it just me, or do things somehow just do not add up logically? For example, pax up by 25.5%, revenues up by 37.5% which seems to indicate an increase in yields, while having so many competitors like QR and EY all around dropping and trashing the yields substancially in the region
Typhoonpilot
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...Read back to the tablets of stone written at the inception of the airline to all it's staff, it's primary objective was to promote Dubai. This I would say has been accomplised beyond anyone's wildest dreams. That, in my book, makes Emirates Airlines a resounding success, by any yardstick ! !
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Fuel: No JET aviation fuel refinery in Dubai or I believe the UAE. EK has to import it from outside and I believe sometimes it comes from Japan? Many of us tanker the stuff back from places such as Pakistan - so no we don't get much of a bonus, but then again if we are providing the refinery with the initial black stuff then maybe we DO get a discount !!!!
Bums on seats - revenue up. Can't see it myself, yes the Manilla route is doing well but the flights to the UK, in particular London have not been so good. I wonder where this increased pax % is coming from. I do think that the cargo side ie what we carry when the a/c is not so full of pax is doing well.
Remember accountant can cook up what they want from the books - all I do know is that those people who are at the sharp end working with the public will not get the bonus they deserve this year.
ta for now
Bums on seats - revenue up. Can't see it myself, yes the Manilla route is doing well but the flights to the UK, in particular London have not been so good. I wonder where this increased pax % is coming from. I do think that the cargo side ie what we carry when the a/c is not so full of pax is doing well.
Remember accountant can cook up what they want from the books - all I do know is that those people who are at the sharp end working with the public will not get the bonus they deserve this year.
ta for now
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Much of this profit was achieved by a record first three months. EK are suffering the same as other carriers and the surge in fuel costs are likely to have a serious impact on the whole year figures.
All this rubbish from legacy cariers and hints about unfair competion is a bit rich, especially when it comes from the likes of AF!!
All this rubbish from legacy cariers and hints about unfair competion is a bit rich, especially when it comes from the likes of AF!!
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When Emirates reports financial figures, it is usually for the entire EK Group, not just the airline. The Group owns DNATA, catering, security, MMI (alcohol distributors), Galileo, Duty Free so it is easy to see why they show a profit. They pay market rate for fuel but every other aspect of the aviation industry is monopolized. And Dubai may have an open sky policy but try and open up a flight catering company! Check out the published report and see what % of profits are generated by alcohol sales. And don’t forget they have minimal future pension liabilities that other airlines must recognize.
It is the little things that other airlines pay for that they avoid. For example, what rent will they pay on their new engineering hangar? That is why they make a profit year in and out!
It is the little things that other airlines pay for that they avoid. For example, what rent will they pay on their new engineering hangar? That is why they make a profit year in and out!
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gaz90
The construction of the engineering complex, new EGHQ, Cabin Crew Training Centre, etc, will all have to be paid for by EK. They may get the land cheaper, I'm not sure, but this idea that they get 'free this and free that' is garbage.
How many western legacy carriers have been set up and equipped with huge government subsidies and unpaid debts that were written off? Generally the same ones that are moaning now that other carriers are not playing fair!
The reason they make a profit year in year out (although that is far from certain this year if fuel prices remain high) is down to hard work and a good product, a novel idea that a few other airlines should try out!
The construction of the engineering complex, new EGHQ, Cabin Crew Training Centre, etc, will all have to be paid for by EK. They may get the land cheaper, I'm not sure, but this idea that they get 'free this and free that' is garbage.
How many western legacy carriers have been set up and equipped with huge government subsidies and unpaid debts that were written off? Generally the same ones that are moaning now that other carriers are not playing fair!
The reason they make a profit year in year out (although that is far from certain this year if fuel prices remain high) is down to hard work and a good product, a novel idea that a few other airlines should try out!
