Emirates more than doubled its profit in its fiscal year as the business environment improved, Sheikh Ahmed said. Pawan Singh / The National 
Emirates more than doubled its profit in its fiscal year as the business environment improved, Sheikh Ahmed said. Pawan Singh / The National 

Emirates full-year profit surges 124% as revenue and capacity climb



Emirates airline, the world’s biggest operator of wide-body aircraft, reported a 124 per cent rise in profit for its last fiscal year on the back of higher revenues and a decline in the US dollar against major currencies in most of its key markets.

The world's biggest long-haul airline on Wednesday said net profit rose to Dh2.8 billion in its fiscal year ending March 31, 2018, while the parent company Emirates Group, which also includes its Dnata ground-handling operations and cargo, posted a 67 per cent rise in profit to Dh4.1bn in the same period.

“Business conditions in 2017-18, while improved, remained tough,” said Sheikh Ahmed bin Saeed, chairman of Emirates. “We saw ongoing political instability, currency volatility and devaluations in Africa, rising oil prices which drove our costs up, and downward pressure on margins from relentless competition...on the positive side, we benefited from a healthy recovery in the global air cargo industry, as well as the relative strengthening of key currencies against the US dollar.”

Emirates carried 4 per cent more passengers, serving a record 58.5 million people. It reported a 77.5 per cent seat load factor in the period compared to 75.1 per cent previously. The airline's revenue increased 9 per cent to Dh92.3bn, supported by strong cargo performance, while group revenue climbed 8 per cent to Dh102.4bn over last year’s results. Total passenger and cargo capacity crossed 61 billion available tonne kilometres (ATKM) in the last fiscal year.

An expanded codeshare agreement with low-cost sister flydubai benefited the airline as will closer collaboration in the future with Abu Dhabi’s Etihad Airways – in catering, ground-handling and lounge facility sharing, Sheikh Ahmed told reporters.

“The relationship with Etihad is going in the right direction, and my view is we can continue this,” he said.

In line with profit growth, the group declared a dividend of Dh2bn to majority shareholder the Investment Corporation of Dubai. The strong results come after Emirates saw profits plunge 82 per cent in the 2016-17 fiscal year. Like other Middle Eastern carriers, Emirates was hit hard by tough operating conditions at the start of 2017, including travel restrictions on US routes, a ban on large electronic devices in cabins and currency fluctuations.

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“Emirates' business environment has markedly improved over the last financial year,” said Diogenis Papiomytis, director of commercial aviation at management consultancy Frost & Sullivan. “The US presidency has not been as disruptive to Gulf carriers’ US operations as previously expected, while socio-political destabilising events have reduced in their number and impact.”

Global airline yields are projected to bounce back after five years of consecutive declines, according to the International Air Transport Association.

Emirates has implemented several measures to boost revenues in the last fiscal year, including charging for advance seat selection and reducing its payroll by 3 per cent from the previous year.

“The recovery was fast because the reaction was fast,” said Andrew Charlton, managing director of consultancy Aviation Advocacy. “They did the right things – trimmed capacity, trimmed costs and looked at their operations through gimlet eyes. The plan to refresh the fleet will save fuel too, which is just as well as the oil price goes up past $70 [per barrel] again.”

Looking ahead Sheikh Ahmed said he expects a “good” 2018/19 and that escalating fuel costs will be the single biggest challenge for the coming year. Emirates plans to keep identifying efficiencies, he said.

The carrier’s fuel bill increased 18 per cent in the 2016/17 fiscal year and total operating costs rose by 7 per cent. Emirates is unlikely to hedge fuel because of rising oil prices, Sheikh Ahmed said.

The airline has no immediate plans to stop flights to Iran following the US decision on Tuesday to exit the Iran nuclear deal, he said.

“We continue to fly to Iran and through its airspace. The airline cannot control geopolitical issues and we will do what we always do in such situations: look at which new markets to go to.”

In February, Emirates confirmed a preliminary $16bn order from Airbus for 20 A380 aircraft and options for 16 more. The carrier is expected to exercise its A380 options “soon”, Sheikh Ahmed said.

Meanwhile, the expanded codeshare partnership between Emirates and flydubai announced last July has helped boost the bottom line as the two carriers ratchet up a bigger slice of the regional aviation market. The partnership launched codeshare routes to more than 80 destinations to date, with plans to build a joint network of 240 destinations by 2022.

Dnata's ground handling business achieved its highest profit ever reaching Dh1.3bn.

Paatal Lok season two

Directors: Avinash Arun, Prosit Roy 

Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong

Rating: 4.5/5

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  2. Ovarian tissue surgically removed
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If you go...

Etihad flies daily from Abu Dhabi to Zurich, with fares starting from Dh2,807 return. Frequent high speed trains between Zurich and Vienna make stops at St. Anton.

Emergency

Director: Kangana Ranaut

Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

Rating: 2/5

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
UAE squad

Humaira Tasneem (c), Chamani Senevirathne (vc), Subha Srinivasan, NIsha Ali, Udeni Kuruppuarachchi, Chaya Mughal, Roopa Nagraj, Esha Oza, Ishani Senevirathne, Heena Hotchandani, Keveesha Kumari, Judith Cleetus, Chavi Bhatt, Namita D’Souza.

Meydan race card

6.30pm: Maiden Dh 165,000 1,600m
7.05pm: Handicap Dh 185,000 2,000m
7.40pm: Maiden Dh 165,000 1,600m
8.15pm: Handicap Dh 190,000 1,400m
8.50pm: Handicap Dh 175,000 1,600m
9.25pm: Handicap Dh 175,000 1,200m
10pm: Handicap Dh 165,000 1,600m

MATCH INFO

Europa League final

Who: Marseille v Atletico Madrid
Where: Parc OL, Lyon, France
When: Wednesday, 10.45pm kick off (UAE)
TV: BeIN Sports

Tightening the screw on rogue recruiters

The UAE overhauled the procedure to recruit housemaids and domestic workers with a law in 2017 to protect low-income labour from being exploited.

 Only recruitment companies authorised by the government are permitted as part of Tadbeer, a network of labour ministry-regulated centres.

A contract must be drawn up for domestic workers, the wages and job offer clearly stating the nature of work.

The contract stating the wages, work entailed and accommodation must be sent to the employee in their home country before they depart for the UAE.

The contract will be signed by the employer and employee when the domestic worker arrives in the UAE.

Only recruitment agencies registered with the ministry can undertake recruitment and employment applications for domestic workers.

Penalties for illegal recruitment in the UAE include fines of up to Dh100,000 and imprisonment

But agents not authorised by the government sidestep the law by illegally getting women into the country on visit visas.

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