Emirates Airline records $288m profit in 2019-20

Emirates airline has reported a profit of US$ 288 million, for the year ended on March 31, 2020, which is 21 per cent up from the previous year.

During the same period, Emirate Group comprising Emirates Airline, dnata and their subsidiaries posted a profit of USD$ 456 million, which is 28 per cent down from last year.

The Emirates Group revealed the scenario in its 2019-20 Annual Report in Dubai, according to a media statement received today, or Sunday.

The Group announced its 32nd consecutive year of profit, against a 5.0 per cent drop in revenue mainly attributed to reduced operations during the planned DXB runway closure in the first quarter, and the impact of flight and travel restrictions due to the COVID-19 pandemic in the fourth quarter.

The Group’s revenue reached US$ 28.3 billion.

Though Emirates’ profit increased over the past year but its total passenger and cargo capacity declined by 8.0 per cent at the end of 2019-20, due to the Dubai Airport runway closure capacity restrictions and COVID-19 impact with a complete suspension of passenger services as directed by the UAE government during March 2020.

While Emirates recorded a very strong revenue performance during its second and third quarter of 2019-20, the DXB runway closure and COVID-19 crisis in the other quarters impacted its total revenue for the financial year with a decline of 6.0 per cent to US$ 25.1 billion.

The relative strengthening of the US dollar against currencies in many of Emirates’ key markets had a US$ 262 million negative impact to the airline’s bottom line. Emirates SkyCargo freighter division of Emirates contributed to 13 per cent of the airline’s total transport revenue.

Emirates closed the financial year with a healthy level of US$ 5.5 billion of cash assets, the statement added.

The overall passenger traffic declined, as Emirates carried 56.2 million passengers (down 4.0 per cent). With the seat capacity down by 6.0 per cent, the airline achieved a passenger seat factor of 78.5 per cent.

For 2019-20, dnata recorded a sharp profit decline (57 per cent) to US$ 168 million, though the total revenue grew to US$ 4.0 billion, up 2.0 per cent.

This reflects its continued business growth particularly in its catering division, and strong customer retention and new contract wins across its four divisions. dnata’s international business now accounts for 72 per cent of its revenue.

Across its more than 120 subsidiaries, the Group’s total workforce remained nearly unchanged with 105,730 employees, representing over 160 different nationalities.