Emirates profits hit new high

The Emirates Group reported its 19th consecutive year of profit with a new record performance backed by continued double-digit growth.

Group net profits increased 23.5% to UAE Dhs 3.5 bln (USD 942 mln) for the financial year ended 31st March 2007, while Group revenue increased by 28.4% to Dhs 31.1 bln (USD 8.5 bln). Emirates will pay a dividend of Dhs 400 mln (USD 109 mln) to its owner, the Government of Dubai.

The Group’s latest record performance, backed by double-digit profit and revenue growth, reflects its success in growing demand for its services, and its ability to attract more premium customers through its multi-million dollar investments in product innovations and service enhancements. This is illustrated by the 3 mln more passengers who flew Emirates in the latest financial year, for a new record total of 17.5 mln.

Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group said: “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.”

In his review in the 2006-07 Annual Report, Sheikh Ahmed highlighted the mutually-supportive relationship between Dubai’s rapid development and the growth of Emirates and Dnata which have directly and indirectly contributed to the city’s growing infrastructure and reputation as an international centre for commerce and tourism.

Amongst the highlights of the year was Emirates’ order for 10 Boeing 747-8 freighters worth Dhs 12.1 bln (USD 3.3 bln) at the 2006 Farnborough Air Show. The airline also ordered five additional Boeing 777-300ERs from GECAS on operating leases to meet its capacity requirements due to the delayed delivery of the A380s.

Emirates’ current order book for 107 new aircraft is worth Dhs 111 bln (USD 30 bln) in list prices. Over the next eight years, the airline will continue to receive delivery of one new aircraft per month on average.

The division’s new Emirates Hotels & Resorts arm also continued to develop, and this financial year will see the launch of two new properties – Emirates Marina Hotel & Residence, due to open in September, and Emirates Green Lakes Serviced Apartments, scheduled to open in January 2008.