| Emirates Results excluding DNATA in AED billions | y/e 31 March 2017 |
half year to 31 March 2017 |
half year to 30 Sept 2016 | y/e 31 March 2016 |
y/e 31 March 2015 |
y/e 31 March 2014 |
y/e 31 March 2013 |
y/e 31 March 2012 |
y/e 31 March 2011 |
||
| Airline Revenue including other operating income | 85.1 | 43.2 | 41.9 | 85.0 | 88.8 | 82.6 | 73.1 | 62.3 | 54.2 | ||
| Airline Profit Attributable to Owner | 1.3 | 0.5 | 0.8 | 7.1 | 4.6 | 3.3 | 2.3 | 1.5 | 5.4 | ||
| Costs: | |||||||||||
| Fuel Costs | 20.9 | 19.7 | 28.7 | 30.7 | 27.9 | 24.3 | 16.8 | ||||
| Staff Costs | 12.8 | 12.4 | 11.9 | 10.2 | 9.0 | 7.9 | 7.6 | ||||
| Aircraft – Number: | 259 | 251 | 231 | ||||||||
| Airline Profit attributable to shareholder as % of revenue | 1.5% | 8.4% | 5.1% | 4.0% | 3.1% | 2.4% | 10.0% | ||||
| Passengers flown | 56.1 | 28.1 | 28.0 | 51.9 | 48.1 | 44.5 | 39.4 | 34.0 | 31.4 | ||
| Load factor | 75.1% | not separately reported | 75.3% | 76.5% | 79.6% | 79.4% | 79.7% | 80% | 80% | ||
| Total Group Revenue inc DNATA | 94.7 | 48.2 | 46.5 | 92.9 | 96.5 | 87.8 | 77.5 | 67.4 | 57.4 | ||
| Total Group profit inc DNATA attributable to owner | 2.5 | 1.2 | 1.3 | 8.2 | 5.5 | 4.1 | 3.1 | 2.3 | 6.0 | ||
| Group Profit Share Target | 7.27 billion | 3.7 billion | 4.255 billion | 3.5 billion | 6.0 billion ? | unknown | |||||
| Profit Share | Zero | 3 weeks | 9 weeks | Profit share target not achieved but nominal bonus of 3 weeks | Zero | Zero | 12 weeks |
Looking for a silver lining the Emirates Group announced that it had recorded its 29th consecutive year of profit. In this case just AED 2.5 billion (US$ 670 million).
The airline itself, Emirates, reported a profit of AED 1.3 billion (US$ 340 million). The balance of the Group profit came from DNATA.
Yet despite significant capacity increases revenue was basically unchanged at AED 85.1 billion (US$ 23.2 billion).
So what were the underlying causes. Emirates blamed just about everything and everyone, other than its own leaders.
- The “relentless rise” of the US dollar in most of its key markets.
- The Brexit vote
- Europe’s immigration challenges and terror attacks
- New policies impacting air travel into the US.
- Currency devaluation and funds repatriation issues in parts of Africa.
- The continued knock-on effect of a sluggish oil and gas industry on business confidence and travel demand.
- Competition squeezing airline yields.
- Volatility in many markets impacting travel flows and demand.
Yes, it was the Groups 29th consecutive year of profits, but the figure collapsed by 70% to Dhs2.5 billion.
The airline’s profit decreased by 82% to Dhs1.3 billion. The seat load factor declined to 75.1% from 76.5%. Seat capacity increased by 10%.
The airline has responded with a plan to cut total operating costs. But the sponsorship portfolio is unlikely to change; although the airline did sever its World Cup connections with FIFA.
Route cuts seem inevitable: the airline has reduced 25 weekly services to five destinations in the US and optimised frequencies to others including Athens, Birmingham and Rome. It stopped services to Sabiha Gokcen, Turkey and Abuja, Nigeria last year.
But that capacity has to be either re-deployed or airplanes put into storage.
Of course the airline fell far short (66%) of its profit share target of Dhs7.27 billion. There was no profit share for 2016/2017.
As I have said before there are changes coming at Emirates and for the structure of the UAE’s airlines.