Bangkok--Jun 17--The Emirates Group
The Emirates Group - comprising Emirates Airline and Dnata - has completed another successful year with profits up 15.6 per cent to US$ 117 million (US Dollars one hundred and seventeen million).
Total group revenue increased 8.8 per cent to at US$ 1,315 million (US Dollars one thousand three hundred and fifteen million) in the year under review, ending March 31, 1999.
Emirates Airline contributed US$ 1,211 million (US Dollars one thousand two hundred and eleven million to Group revenue, while Dnata’s share was US$ 154 million (US Dollars one hundred and fifty four million), representing increases of 8.7 and 10.8 per cent respectively. Profits by the airline increased 19.3 per cent to US$ 85 million (US Dollars eighty-five million). Dnata’s profits were up 6.6 per cent to US$ 32 million (US Dollars Thiery-two million).
Financial Year’s 1998/1999 results prove, once again, the Emirates Group’s resilience during a continued period of difficult economic incluences.
Emirates Group’s Chairman, HH Sheikh Ahmed bin Saeed Al Maktoum, said: “It was an extremely tough year. There was turmoil and chaos in many of the countries we serve in the Pacific Rim with currency devaluations, bank closures and government take-overs while global markets were characterised by the aggressive commercial policies of the international airline community.
“But despite this, we achieved more than satisfactory results thanks to an incisive marketing strategy and creative cost-reduction programmes. I am happy to report that we did not reduce our service levels or standards, despite the cost-saving efforts.”
The Group’s convincing performance resulted in Emirates’ third Airline of the Year award and Dnata Cargo’s Dubai Quality Award - Services Sector 1998 and the Best Cargo Terminal Operator Middle East 1998 award by the Asian Freight Industry Association (AFIA).
Milestone achievenments included the record 4.25 million passengers carried by Emirates across the world and the more than 10 million passengers handled by Dnata at the Dubai International Airport.
Maurice Flanagan, Group Managing Director, said: “It was another good year for the Emirates Group, despite the upheaval in currency markets, the unrelenting competition for both Emirates and Dnata and a general weakening of global trade which sent the cargo and passenger yields reeling. We have grown into one of the largest business concerns in the Gulf and now employ more than 11,000 staff.”
Emirates Group is expected to continue its profitable track record during Financial Year 1999/2000. Sheikh Ahmed commented: “The prognosis for 1999/2000 is challenging with yield remaining under pressure and higher fuel prices likely to erode the scope for further reductions in unit costs. I am confident however, that the Emirates Group will emerge successful and profitable as we enhance our customer standards by investing in new aircraft, new on-board services, new IT programmes and intensive training of staff.” End.