Saturday 18 November 2017

Revenue up 6pc at Emirates despite pressure on margins

Revenue at international aviation company Emirates Group has risen by 6pc to $13.5bn
Revenue at international aviation company Emirates Group has risen by 6pc to $13.5bn
Ellie Donnelly

Ellie Donnelly

Revenue at international aviation company Emirates Group has risen by 6pc to $13.5bn in the six months to 30 September.

Despite what the group described as "continuing downward pressure on margins" the group reported a net profit of $631m, an increase of 77pc in the six month period.

The increase in profit was driven by capacity optimisation and efficiency initiatives across the company, according to the group’s half year results.

In addition the Dubai-based group said that it had experienced favourable foreign exchange movements.

The group’s cash position at 30 September was $5.2bn.

Passenger numbers at the airline segment of the group rose 4pc year-on-year during the six month period to 29.2 million people.

The volume of cargo uplifted rose by 1.3 million tonnes, up 5pc, while the yield from cargo increased by 8pc.

"Our margins continue to face strong downward pressure from increased competition, oil prices have risen, and we still face weak economic and uncertain political realities in many parts of the world.

Yet the group has improved revenue and profit performance. This speaks to the resilience of our business model, and the agility of our people," his Highness Sheikh Ahmed bin Saeed Al Maktoum, chair and CEO of Emirates, said.

During the first six months of the year, the company received four new Airbus A380s and six Boeing 777s, while the company has nine more aircraft scheduled to be delivered before the end of its financial year.

Emirates also launched two new passenger routes to Croatia and Cambodia during the six month period.

As of 30 September the airline had a global network spanning 156 destinations in 84 countries.

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