Economic Reporter :The Emirates Group comprising Emirates Airline, dnata and other subsidiaries yesterday (10 May, 2016) announced its 28th consecutive year of profit and steady business expansion, ending the year with record profits, and in a strong position despite the global and operational challenges during this period.In its 2015-16 Annual Report, the Emirates Group posted an US$ 2.2 billion profit for the financial year ending 31 March 2016, up 50% from last year. The Group’s revenue reached US$ 25.3 billion, a decrease of 3% over last year’s results, and the Group’s cash balance increased strongly to US$ 6.4 billion.Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group releasing the Annual Report said: “Emirates and dnata delivered record profits, solid business results, and continued to grow throughout 2015-16. Against an unfavourable currency situation which eroded our revenues and profits, an uncertain global economic environment dogged by weak consumer and investor sentiment, as well as ongoing socio-political instability in many regions around the world, the Group’s performance is testament to the success of our business model and strategies.”In line with the overall profit, the Group declared a dividend of US$ 681 million to the Investment Corporation of Dubai. Emirates Airline successfully managed increased competitive pressure across all markets to record a profit of US$ 1.9 billion, an increase of 56% over last year’s results, and a healthy profit margin of 8.4%, the strongest margin since 2010-11. Emirates’ total passenger and cargo capacity crossed the 56 billion mark, to 56.4 billion ATKMs at the end of 2015-16, cementing its position as the world’s largest international airline. The airline increased capacity during the year by 5.5 billion Available Tonne Kilometres (ATKMs), or 11% over 2014-15. Emirates received 29 new aircraft, its highest number during a financial year, including 16 A380s, 12 Boeing 777-300ERs and one Boeing 777F, bringing its total fleet count to 251 at the end of March. At the same time nine aircraft were phased out, taking the average fleet age down to 74 months or approximately half the industry average of 140 months. The airline remains the world’s largest operator of the Boeing 777 and A380 – both aircraft being amongst the most modern and efficient wide-bodied jets in the sky today.With significant currency devaluations against the US dollar and fare adjustments following the reduction in fuel prices, Emirates revenue dropped 4% to US$ 23.2 billion.Carrying a record 51.9 million passengers (up 8%), Emirates crossed the 50 million passenger milestone, and achieved a Passenger Seat Factor of 76.5%. The decline in passenger seat factor compared to last year’s 79.6%, is relative to the strong 13% increase in seat capacity by Available Seat Kilometres (ASKMs), and also in part due to lingering economic uncertainty and strong competition in many markets.
