Record profits for Emirates Group
The Emirates Group ended the 2015-16 financial year by recording record profits and marking a 28th consecutive year of business expansion.
The Emirates and dnata group continued to expand globally throughout the year via strategic investments that left it in a strong position, posting a profit of AED8.2 billion (US$2.2 billion) for the year ending March 31st. This is a 50% year on year increase.
Unfavourable currency situation
The success of the company comes in spite of challenging global economic circumstances which have affected the Middle East and Asia.
Low oil prices have been good for airline operating costs but global business and consumer confidence has suffered. The strength of the US dollar against other major currencies has added to the complicated picture for international carriers.
Chairman and Chief Executive of Emirates Airline and Group, Sheikh Ahmed bin Saeed Al Maktoum, 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 2015-16, the group collectively invested more than AED17.3 billion (US$4.7 billion) to upgrade their fleet of aircraft and equipment, as well as buying other companies, building modern facilities and implementing various staff initiatives.
“These will build on our strong foundations, extend our competitive edge, and accelerate our progress towards our long-term goals,” the Sheikh explained.
The group now has more than 80 subsidiaries and companies and employs more than 95,000 people, covering 160 different nationalities. The work force is 13% larger than the previous year.
The overall profit meant that the group was able to declare a dividend of AED 2.5 billion (US$681 million) to the Investment Corporation of Dubai.
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Date Created: 11 May 2016