Emirates Group records Dh2.31b net profit

Emirates Group, on the whole, recorded a net profit of Dh2.31 billion in the 2011-12 financial year, down 61 per cent from the previous year's net profit of Dh5.9 billion, its 24th consecutive year of profit, the company said in a statement. It added that despite the fundamental challenges, the group earned record revenue of Dh67.4 billion, up 17.8 per cent from the previous year. "Throughout the 2011-12 financial year, the group has collectively invested close to Dh14 billion in new products. This investment has garnered new customers and increased our international presence," Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and Chief Executive of Emirates airline and group said in a statement. According to Ernest Arvai, President and CEO of aviation consultancy The Arvai Group, Emirates is well positioned to continue its profitability for a 25th consecutive year. "However, this won't be an easy task, especially with volatility projected for fuel prices, exchange rates, an economic crises in the Eurozone, and a slowdown in some Asian markets. Nonetheless, Emirates, having remained resilient during a difficult 2011, appears well positioned to execute its plans for additional growth and profitability in 2012," he told Gulf News, adding that the outlook for 2012 for the industry is mixed internationally, with carriers in Europe and Asia facing financial difficulties. According to industry watchdog International Air Transport Association estimates, the airline industry's profit will likely drop 62 per cent to $3 billion in 2012, giving a 0.5 per cent margin. But despite a difficult operating environment, the group said it continued to invest in and expand on its employee base, increasing its overall staff count by more than ten per cent. As of March 31, the group and its subsidiaries employed 63,000 personnel. "With the help of our 63,000 strong multicultural workforce we have no doubt that the years ahead will again be more profitable than the last," said Shaikh Ahmad. Further, the group paid Dh500 million in dividend to its shareholder — the Government of Dubai, as disclosed in the group's consolidated cash flow statement, which reveals that the group paid a dividend of Dh2.3 billion in financial year 2010-11. Emirates Group units: Emirates' cargo unit, Emirates SkyCargo, meanwhile, earned revenues of Dh9.5 billion last fiscal, an 8.4 per cent increase over the previous year on account of an increase in freight tonnage and freight yield per freight tonne kilometre (FTKM), Emirates said in the statement, adding that Emirate SkyCargo contributed 16.2 per cent of Emirates' total transport revenue. Emirates' Destination and Leisure Management (D&LM) division, meanwhile, saw revenue of Dh245 million during the year, up 8.4 per cent over the previous year.