The Emirates Group has announced its 28th consecutive year of profit and steady business expansion, ending the year with record profits, and in a strong position despite the global and operational challenges during this period. During the 2015-16 financial year, both Emirates and dnata achieved new capacity and profit milestones, as the group continued to expand its global footprint, and strengthen its business through strategic investments.
As released in its 2015-16 annual report, the Emirates Group posted US$ 2.2 billion profit for the financial year ending March 31, 2016, up 50 per cent from last year. The group’s revenue reached US$ 25.3 billion, a decrease of three per cent over last year’s results, and the group’s cash balance increased US$ 6.4 billion.
H H Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group, 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.”
“Our ongoing investments to develop our people and to our enhance business performance, enable us to react with agility to the new challenges and opportunities that every year brings. In 2015-16, the group collectively invested over US$ 4.7 billion in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives. These will build on our strong foundations, extend our competitive edge, and accelerate our progress towards our long-term goals,” he added.
Looking at the year ahead, the group expects that the low oil prices will continue to have dual impact – a boon for operating costs, but a bane for global business and consumer confidence. The strong US dollar against major currencies will remain a challenge, as will the looming threat of protectionism in some countries. “We enter the new financial year with confidence, backed by a robust balance sheet, solid track record, diverse global portfolio, and international talent pool. We will continue to evolve and grow our business profitably, and work even harder to meet and exceed our customers’ expectations,” added Sheikh Ahmed.
In line with the overall profit, the group declared a dividend of US$ 681 million to the Investment Corporation of Dubai.
In its 57 years of operation, 2015-16 has been dnata’s most profitable yet, crossing US$ 287 million profit for the first time. Building on its strong results in the previous year, dnata’s revenue grew to US$ 2.9 billion. Dnata’s international business now accounts for more than 64 per cent of its revenue.
This substantial revenue increase of 16per cent was achieved through organic growth, and bolstered by the first full year of Stella Group operations which dnata Travel acquired in October 2014 of the previous financial year, and airport operations in Australia which dnata fully acquired from its 50 per cent joint venture partner Toll in March 2015.
Building on last year’s record levels of investment, dnata continued to lay the foundations for future growth by investing US$ 159 million into developing its people, facilities, technology and new acquisitions.
