Emirates Group 2018-19 results

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https://www.emirates.com/media-centre/emirates-group-announces-2018-19-results
Emirates Group Announces 2018-19 results
Group records 31st consecutive year of profit of AED 2.3 billion (US$ 631 million)

Strong business growth leading to a record revenue of more than AED 109 billion (US$ 29.8 billion)
Solid cash balance of AED 22.2 billion (US$ 6.0 billion)
Declares a dividend of AED 500 million (US$ 136 million) to the Investment Corporation of Dubai.
Emirates reports a profit of AED 871 million (US$ 237 million), 69% down from the previous year

Revenue increases by 6% to AED 97.9 billion (US$ 26.7 billion), supported by steady passenger and cargo performance
Airline capacity crosses 63 billion ATKM with a net addition of 2 new aircraft to the fleet
dnata makes record profit of AED 1.4 billion (US$ 394 million), which includes AED 321 million (US$ 88 million) gain from one-time sale of HRG stake

Revenue increases by 10% to AED 14.4 billion (US$ 3.9 billion), reflecting further business expansion with international business now accounting for 70% of revenue
Expands global footprint with acquisition of Qantas catering in Australia and 121 Inflight catering business in the Americas, adds new facilities and service capabilities across its airport operations, catering, and travel services divisions
DUBAI, UAE, 9 May 2019 - The Emirates Group today announced its 31st consecutive year of profit and steady business expansion.

Released today in its 2018-19 Annual Report, the Emirates Group posted a profit of AED 2.3 billion (US$ 631 million) for the financial year ended 31 March 2019, down 44% from last year. The Group’s revenue reached AED 109.3 billion (US$ 29.8 billion), an increase of 7% over last year’s results. The Group’s cash balance was AED 22.2 billion (US$ 6.0 billion), down 13% from last year mainly due to large investments into the business, including significant acquisitions and payment of last year’s AED 2 billion (US$ 545 million) dividend.

In line with the overall profit, the Group declared a dividend of AED 500 million (US$ 136 million) to the Investment Corporation of Dubai for 2018-19.

His Highness (H.H.) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: “2018-19 has been tough, and our performance was not as strong as we would have liked. Higher oil prices and the strengthened US dollar eroded our earnings, even as competition intensified in our key markets. The uptick in global airfreight demand from the previous year appears to have gone into reverse gear, and we also saw travel demand weaken, particularly in our region, impacting both dnata and Emirates.

“Every business cycle is different, and we continue to work smart and hard to tackle the challenges and take advantage of opportunities. Our goal has always been to build a profitable, sustainable, and responsible business based in Dubai, and these principles continue to guide our decisions and investments. In 2018-19, Emirates and dnata delivered our 31st consecutive year of profit, recorded growth across the business, and invested in initiatives and infrastructure that will secure our future success.”

In 2018-19, the Group collectively invested AED 14.6 billion (US$ 3.9 billion) in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives, a significant increase over last year’s investment spend of AED 9.0 billion (US$ 2.5 billion).

In February, Emirates announced a commitment for 40 A330-900s and 30 A350-900s worth US$ 21.4 billion at list prices in an agreement signed with Airbus, to be delivered from 2021 and 2024 respectively. The airline will also receive 14 more A380 deliveries from 2019 until the end of 2021, taking its total A380 order book to 123 units.

dnata’s key investments during the year included: the acquisitions of Q Catering and Snap Fresh in Australia, and 121 Inflight Catering in the US; the buy-out of shares to become the owner of Dubai Express, Freightworks LLC; and a 51% majority stakeholder of Bolloré Logistics LLC, UAE; the build of new cargo and pharma handling facilities in Belgium, the US, the UK, the Netherlands, Australia, Singapore and Pakistan; the acquisition of German tour operator Tropo, and a majority stake in BD4travel, a company providing artificial intelligence driven IT solutions in the travel sector.

Across its more than 120 subsidiaries, the Group’s total workforce increased by 2% to 105,286, representing over 160 different nationalities, mainly influenced by dnata’s new acquisitions and its international business expansion.

Sheikh Ahmed said: “In 2018-19, we were steadfast with our cost discipline while expanding our business and growing revenues. By slowing the recruitment of non-operational roles, and implementing new technology systems and new work structures, we’ve improved productivity and retarded manpower cost increases.”

He concluded: “It’s hard to predict the year ahead, but both Emirates and dnata are well positioned to navigate speed bumps, as well as to compete and succeed in the global marketplace. We must continually up our game, that’s why we invest in our people, technology, and infrastructure to help us maintain our competitive edge. As a responsible business, we also invest resources towards supporting communities, conservation and environmental initiatives, as well as incubating talent and innovation that will propel our industry in the future.”



Emirates performance

Emirates’ total passenger and cargo capacity crossed the 63 billion mark, to 63.3 billion ATKMs at the end of 2018-19, cementing its position as the world’s largest international carrier. The airline moderately increased capacity during the year over 2017-18 by 3%, with a focus on yield improvement.

Emirates received 13 new aircraft during the financial year, comprising of seven A380s and six Boeing 777-300ERs, including the last 777-300ER on its order book. The next 777 delivery is planned for 2020, when Emirates receives its first 777X aircraft.

During 2018-19, Emirates phased out 11 older aircraft, bringing its total fleet count to 270 at the end of March. This fleet roll-over involving 24 aircraft was again one of the largest managed in a year, keeping Emirates’ average fleet age at a youthful 6.1 years.

It reinforces Emirates’ strategy to operate a young and modern fleet, and live up to its “Fly Better” brand promise as modern aircraft are better for the environment, better for operations, and better for customers.

During the year, Emirates launched three new passenger destinations: London Stansted (UK), Santiago (Chile) and Edinburgh (Scotland), and reinstated services to Sabiha Gokcen (Turkey). It also added flight capacity to 14 existing destinations and upgraded capacity to six cities, offering customers more choice of flight timings and onward connections.

Supplementing its organic network growth, Emirates expanded its global connectivity and customer proposition through new codeshare agreements signed with Jetstar Pacific and China Southern Airlines. It also enhanced its commercial strategic partnership with South African Airways.

The Emirates-flydubai partnership continued to develop, with Emirates customers now able to access 67 more destinations served by flydubai, and enjoy greater connectivity with 11 flydubai flights operating from Emirates Terminal 3. The partnership alignment also saw Emirates Skywards become the loyalty programme for both Emirates and flydubai.

Despite stiff competition across its key markets, Emirates increased its revenue by 6% to AED 97.9 billion (US$ 26.7 billion). The relative strengthening of the US dollar against currencies in many of Emirates’ key markets had an AED 572 million (US$ 156 million) negative impact to the airline’s bottom line, a stark contrast to the previous year’s positive currency impact of AED 661 million (US$ 180 million).

Total operating costs increased by 8% over the 2017-18 financial year. The average price of jet fuel climbed by a further 22% during the financial year after last year’s 15% increase. Including a 3% higher uplift in line with capacity increase, the airline’s fuel bill increased substantially by 25% over last year to AED 30.8 billion (US$ 8.4 billion). This is the biggest-ever fuel bill for the airline, accounting for 32% of operating costs, compared to 28% in 2017-18. Fuel remained the biggest cost component for the airline.

Against a backdrop of high fuel prices, strong competitive pressure, and unfavourable currency impact, the airline reported a profit of AED 871 million (US$ 237 million), a decline of 69% over last year’s results, and a profit margin of 0.9%.

Overall passenger traffic remained steady, as Emirates carried 58.6 million passengers (up 0.2%). With seat capacity increasing by 4%, the airline achieved a Passenger Seat Factor of 76.8%. The slight decline in passenger seat factor compared to last year’s 77.5%, reflects the impact of slowing regional economies on travel demand, and strong competition in many markets.

An increase in market fares and a favourable class mix helped support a passenger yield increase of more than 3% to 26.2 fils (7.1 US cents) per Revenue Passenger Kilometre (RPKM), although the full impact was partly offset by the strengthening of the US dollar against most currencies.

During the year, Emirates raised AED 14.2 billion (US$ 3.9 billion) to fund its fleet growth, using a combination of term loans, finance and operating leases.

Testament to the increasing depth of the Japanese structured financing market for Emirates, all six 777-300ER aircraft delivered were financed via a Japanese Operating Lease with a Call Option (JOLCO) raising funding of more than US$ 1 billion. Emirates has now raised over AED 28 billion (US$ 7.6 billion) from the Japanese structured financing market since 2014.

A US$ 600 million corporate Sukuk issued in March 2018 financed 2 A380 deliveries; and the remaining 5 A380 aircraft were taken on a mix of operating lease, Export Credit Agency (ECA) backed finance leases, and finance leases arranged from institutional investors and bank base from Korea, Germany, UK and Middle East.

These deals demonstrate Emirates’ ability to unlock diverse financing sources through access to global liquidity, underscoring its sound financials and the strong investor confidence in the airline’s business model.

Emirates closed the financial year with a healthy level of AED 17.0 billion (US$ 4.6 billion) of cash assets.

Revenue generated from across Emirates’ six regions continues to be well balanced, with no region contributing more than 30% of overall revenues. Europe was the highest revenue contributing region with AED 28.3 billion (US$ 7.7 billion), up 6% from 2017-18. East Asia and Australasia follows closely with AED 26.6 billion (US$ 7.2 billion), up 5%. The Americas region recorded revenue growth at AED 14.5 billion (US$ 3.9 billion), up 8%. Africa revenue increased by 9% to AED 10.2 billion (US$ 2.8 billion), whereas Gulf and Middle East revenue decreased by 3% to AED 8.3 billion (US$ 2.3 billion). West Asia and Indian Ocean revenue increased by 6% to AED 8.1 billion (US$ 2.2 billion).

Through the year, Emirates introduced product and service improvements on board, on the ground, and online.

Highlights include: the completion of a US$ 150 million programme to refurbish its entire Boeing 777-200LR fleet with new, wider Business Class seats and a fully refreshed Economy Class cabin; the launch of the Emirates Vintage Collection featuring fine wines that have been stored for 15 years; and new luxury products in First and Business Class developed in collaboration with brands like Bowers & Wilkins, Bulgari and BYREDO.

On the ground, Emirates introduced a new service so customers in Dubai can check-in for their flights from their homes, hotel or office, and have their luggage transported prior to their flight; it added a new dedicated lounge in Cairo and refurbished the existing Emirates Lounges in New York and Rome; and launched pilot trials for the world’s first ‘biometric path’ at Dubai airport utilising the latest biometric technology to ease Emirates passengers through check-in, immigration formalities, and boarding.

Online, Emirates became the first airline to launch 3D seat models using web-based virtual reality technology, allowing customers to preview its onboard product and select seats. It also launched a new feature on its mobile app, so customers can browse the thousands of movies, music and shows on offer, create personal playlists before they fly, and then sync from their devices to their personal seatback screens when they board.

Emirates SkyCargo continued to deliver a strong performance in a highly competitive market with dampening demand, contributing to 14% of the airline’s total transport revenue.

In an airfreight market facing unrelenting downward pressure on yields and slowing demand, Emirates’ cargo division reported a revenue of AED 13.1 billion (US$ 3.6 billion), an increase of 5% over last year, while tonnage carried slightly increased by 1% to reach 2.7 million tonnes.

Freight yield per Freight Tonne Kilometre (FTKM) for the 2nd consecutive year increased by a further 3%, demonstrating Emirates SkyCargo’s ability to retain and win customers on value despite fuel price increases, and a weakened demand in many markets.

Emirates’ SkyCargo’s total freighter fleet stood at 12 Boeing 777Fs. In addition to belly-hold capacity to Emirates’ new passenger destinations, Emirates SkyCargo launched a new freighter service to Bogota (Columbia), and resumed freighter services to Erbil (Iraq).

Emirates SkyCargo continued to develop innovative, bespoke products tailored to key industry sectors. In April, it launched Emirates AOG, a new airfreight product designed to transport aircraft parts quickly across the globe. This was followed in August by the launch of Emirates Pets and Emirates Pets Plus, which are new and enhanced air transportation products to ensure the safety and comfort of pets with services such as veterinary checks, document clearances, door-to-door transport, and the booking of return flights for pets.

Emirates’ hotels recorded revenue of AED 669 million (US$ 182 million), a decline of 10% over last year with competition further on the rise in the UAE market impacting average room rates and occupancy levels.
 

belumosi

Socio AIAC
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Pax stabili e margini quasi nulli sembrano essere una conferma della saturazione del mercato che EK può aggredire dal proprio hub di DXB.
Questo spiega anche la crescente pressione delle M3 per entrare a tutti i costi nel mercato tra Europa e NA.
E spiega anche perchè gli arabi abbiano abbandonato le trattative per l'open sky EAU-UE sbattendo la porta, quando è stato detto loro che non avrebbero avuto le 5e libertà a raffica da loro richieste.
 

13900

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Altre cose interessanti da notare sono le differenze tra Dnata e Emirates come aviolinea.

Dnata ha un profit margin del 10%, sostanzialmente stabile rispetto all'anno scorso.
Emirates aviolinea ha fatto 0.9%, in riduzione del 2%.
In totale il gruppo fa 3.6%.

A guardarne i costi, Emirates abbastanza "in forma". Le due voci piu' in crescita sono carburante (+24.5%) e FX (+21%), entrambi al di la' del controllo di EK. Employee, overflying, sales e crew layovers sono tutti costi in discesa.

Piu' che cercare espansione ad libitum, secondo me EK puntera' in futuro ad avere aerei piu' adatti, migliorare il LF (medio del 75%, BA/IAG sul lungo sono 10-15% piu' in su) e spingere su ancillaries. Stanno iniziando con far pagare valigie e posti a sedere, han levato la limo per i pax di Business, dovrebbe arrivare anche la Premium Economy... In futuro mi sa che andranno anche nel ramo 'holiday', se gia' non ci sono, e altro. Un'altra cosa che inizierei a fare e' far pagare l'accesso alle lounges per i pax non premium. Hanno un ottimo network di lounges, a prescindere da quella predilezione per il beige... potrebbero sfruttarlo.
 

East End Ave

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su e giu' sull'atlantico...
Altre cose interessanti da notare sono le differenze tra Dnata e Emirates come aviolinea.

Dnata ha un profit margin del 10%, sostanzialmente stabile rispetto all'anno scorso.
Emirates aviolinea ha fatto 0.9%, in riduzione del 2%.
In totale il gruppo fa 3.6%.

A guardarne i costi, Emirates abbastanza "in forma". Le due voci piu' in crescita sono carburante (+24.5%) e FX (+21%), entrambi al di la' del controllo di EK. Employee, overflying, sales e crew layovers sono tutti costi in discesa.

Piu' che cercare espansione ad libitum, secondo me EK puntera' in futuro ad avere aerei piu' adatti, migliorare il LF (medio del 75%, BA/IAG sul lungo sono 10-15% piu' in su) e spingere su ancillaries. Stanno iniziando con far pagare valigie e posti a sedere, han levato la limo per i pax di Business, dovrebbe arrivare anche la Premium Economy... In futuro mi sa che andranno anche nel ramo 'holiday', se gia' non ci sono, e altro. Un'altra cosa che inizierei a fare e' far pagare l'accesso alle lounges per i pax non premium. Hanno un ottimo network di lounges, a prescindere da quella predilezione per il beige... potrebbero sfruttarlo.
Della limo tolta ai J pax non ne sapevo nulla; da quando? E dove, UK , IT, systemwide?
 

13900

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Credo worldwide almeno sulle prenotazioni con le miglia.
 

East End Ave

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su e giu' sull'atlantico...
Credo worldwide almeno sulle prenotazioni con le miglia.
Si, qualcosa sembra essere stato tagliato in effetti, ma non per i pax J revenue, salvo qualche eccezione:

A Hong Kong il servizio è offerto solo ai passeggeri Emirates di First Class.

Dal 1° marzo 2019, le nuove prenotazioni del servizio di auto privata con chauffeur non potranno essere associate ai Classic Rewards Skywards di Business Class e First Class, e ai passaggi da Economy Class a Business Class. Questo vale anche sulle prenotazioni sostitutive del servizio di auto privata con chauffeur per qualsiasi volo di cui sia stata effettuata una nuova prenotazione dopo il 1° marzo 2019. Le prenotazioni del servizio di auto privata con chauffeur completate prima del 1° marzo 2019 in abbinamento a voli successivi al 1° marzo 2019 non subiranno modifiche.

Il servizio di auto privata con chauffeur non è disponibile per i biglietti premio prenotati tramite compagnie partner di Emirates Skywards per voli operati da Emirates.

Il servizio di auto privata con chauffeur non è disponibile per i voli Qantas in codeshare operati da Emirates (con numero di volo QF) tra Asia e Australia/Nuova Zelanda. Per queste tratte, il servizio è disponibile solo per i voli operati da Emirates (con numero di volo EK).

Il servizio di auto privata con chauffeur non è disponibile per i biglietti gratuiti né per i passaggi gratuiti da Economy a Business Class.

Il servizio di auto privata con chauffeur non è disponibile per minori non accompagnati da un genitore/tutore nell'autovettura.

Il servizio di auto privata con chauffeur è disponibile nelle località di stopover, nel caso in cui il passeggero abbia pagato una tariffa (comprese le tasse applicabili) che preveda uno stopover. Il servizio non è disponibile nelle città in cui il passeggero è in transito (cioè dove ci sono meno di 24 ore tra i voli di collegamento).
 

Efato

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Una perdita importante e a quanto pare improvvisa.
Sarebbe interessante conoscerne i retroscena.
beh o lui o Tim Clark. E stavolta sembrava proprio che Tim fosse sul punto di essere mandato in pensione. Invece, nisba. Mi ricorda Andreotti...
 
Ultima modifica:

AZ209

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Londra.
Annunciati i risultati dei primi 6 mesi al 30 settembre 2019.
Utile netto EK in forte crescita ($235m) rispetto ai primi 6 mesi dello scorso anno, grazie soprattuto al taglio dei costi.

Emirates' airline profits jump in first half on lower costs

Lower fuel costs and higher passenger loads helped profits at Emirates' airline operation jump back for the six months to 30 September 2019, though one-off items hitting Dnata's performance resulted in only relatively small gains in group profits over the comparable period.
Emirates' first-half net profit of Dhs862 million ($235 million) compares with Dhs226 million at the same stage last year. While a sharp improvement, it remains at about half the level of the airline's profits at the same stage two years ago, as difficult market conditions persist.
The improved performance at an airline level came despite capacity reductions that resulted from the planned 45-day closure of the southern runway at Dubai International airport.

Emirates cut ASK capacity 5% in the six months to 31 September 2019, while traffic in RPKs was 2% down over the period. This helped lift Emirates' passenger load factor for the period by more than two points to 81.1%, while passenger yields climbed 1%.
Cargo volumes at the carrier, however, were down 8% in the first half – and yields 3% – reflecting the tougher air freight market during the year.
This contributed to a 3% fall in Emirates' revenues to Dhs47.3 billion during the first half.

Reduced capacity though also helped Emirates cut its operating costs by around 8% in the first half. It also benefited from lower oil prices – around 9% down on the same period last year – which contributed to a 13% reduction in its fuel costs for the six months.

While fortunes improved at the airline, profits fell 64% to Dhs311 million at ground services division Dnata. That largely reflects the inclusion of a Dhs321 million one-off gain in the previous period from the divestment of a 22% stake in travel management company Hogg Robinson Group.
But profits were also hit by the bankruptcy of Thomas Cook, one of the major customers for Dnata’s travel and catering businesses in the UK. This resulted in an impairment loss on trade receivables and intangible assets of Dhs84 million during the first half.
It means that overall, Emirates Group increased its net profit 8% for the six months ending 30 September 2019 to Dhs1.2 billion ($320 million). Group revenue was down 2% at Dhs53.3 billion.

Emirates group chairman Sheikh Ahmed bin Saeed Al Maktoum says: "The Emirates Group delivered a steady and positive performance in the first half of 2019-20, by adapting our strategies to navigate the tough trading conditions and social-political uncertainty in many markets around the world.
"Both Emirates and Dnata worked hard to minimise the impact of the planned runway renovations at DXB on our business and on our customers. We also kept a tight rein on controllable costs and continued to drive efficiency improvement."
He adds: "The global outlook is difficult to predict, but we expect the airline and travel industry to continue facing headwinds over the next six months with stiff competition adding downward pressure on margins." Cirium/FG

 

leerit

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Dubai concederà aiuti finanziari alla sua compagnia aerea Emirates Airlines per proteggerla dalle ricadute del coronavirus che ha costretto i vettori di tutto il mondo a mettere a terra centinaia di velivoli.
L’importo del sostegno finanziario non è stato svelato dal tweet dello sceicco Hamdan bin Rashid Al Maktoum, vice governatore dell’emirato, con cui ha annunciato l’operazione. Emirates ha messo a terra praticamente tutta la sua flotta a seguito delle restrizioni introdotte dai paesi per isolare il coronavirus.

«Oggi rinnoviamo il nostro impegno a sostenere una storia di successo iniziata negli anni 80, trasformandola in una delle migliori compagnie al mondo - ha scritto nel tweet Sheikh Hamdan -. Il governo di Dubai si impegna a fornire il pieno supporto a Emirates Airline in queste circostanze eccezionali iniettando nuovo capitale nella società».

Emirates rappresenta l’emblema dell’ascesa di Dubai negli ultimi tre decenni, da un avamposto nel deserto a un centro commerciale e turistico globale. A pesare sulla compagnia la composizione della sua flotta con aerei di grandi dimensioni come gli Airbus A380 e Boeing 777. Oltre alla pandemia pesa sul paese e sulla sua compagnia aerea il crollo del prezzo del petrolio e del turismo cominciato a calare dallo scorso gennaio quando il virus aveva cominciato a diffondersi in Cina.

Emirates Airways è uno dei principali vettori del Medio Oriente insieme al Qatar Airways e Ethiad Airways. La settimana scorsa il Qatar ha dichiarato di aver mantenuto circa un terzo del suo network, in parte perché la compagnia ha una flotta più diversificata che include anche aerei di dimensioni inferiori (narrow body). Emirates, al contrario, vola solo con aerei di linea di ampie dimensioni (wide body): nella sua flotta conta 115 A380.

https://www.ilsole24ore.com/art/emirates-dubai-pronto-intervenire-salvarla-ADWVHGH