May 17, 2017: The Emirates Group posted an AED 2.5 billion (US$ 670 million) profit for the financial year ending 31 March 2017, down 70 percent from last year’s record profit.
The Group’s revenue reached AED 94.7 billion (US$ 25.8 billion), an increase of 2 percent over last year’s results, and the Group’s cash balance decreased by 19 percent to AED 19.1 billion (US$ 5.2 billion) mainly due to the repayment of two bonds on maturity and ongoing high investments into its fleet and aircraft related assets, said the company in a release.
In line with the current business climate and to support the future investment plans of the Group, no dividend payment will be made to the Investment Corporation of Dubai (ICD) for 2016-17.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman, Emirates Airline and Group, said, “Emirates and dnata have continued to deliver profits and grow the business, despite 2016-17 having been one of our most challenging years to date.
“Over the years, we have invested to build our business capabilities and brand reputation. We now reap the benefits as these strong foundations have helped us to weather the destabilising events which have impacted travel demand during the year - from the Brexit vote to Europe’s immigration challenges and terror attacks, from the new policies impacting air travel into the US, to currency devaluation and funds repatriation issues in parts of Africa, and the continued knock-on effect of a sluggish oil and gas industry on business confidence and travel demand.”
In 2016-17, the Group collectively invested AED 13.7 billion (US$ 3.7 billion) in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives.
Ahmed added, “These investments will further strengthen our resilience, even as we extend our competitive edge, and adapt our businesses to the volatile business climate and fast changing consumer expectations.
“We remain optimistic for the future of our industry, although we expect the year ahead to remain challenging with hyper competition squeezing airline yields, and volatility in many markets impacting travel flows and demand.”
Across its more than 80 subsidiaries and companies, the Group increased its total workforce by 11 percent to over 105,000-strong, representing over 160 different nationalities.
Emirates’ total passenger and cargo capacity crossed the 60 billion mark, to 60.5 billion ATKMs at the end of 2016-17. The airline increased capacity during the year by 4.1 billion Available Tonne Kilometres (ATKMs), or 7 percent over 2015-16.