Emirates Group reported on Thursday a 70 per cent decline in its net profit, which reached Dh2.5 billion for the financial year ending March 31, 2017, as the group cited “a turbulent year for aviation and travel. “The group’s revenues for the year were up 2 per cent year-on-year to reach Dh94.7 billion.

In a statement, Shaikh Ahmad Bin Saeed Al Maktoum, chairman and chief executive officer of Emirates Airline and Group, said 2016-2017 was one of the company’s “most challenging years to date.”
“We remain optimistic for the future of our industry, although we expect the year ahead to remain challenging, with hyper competition squeezing airline yields, and volatility in many markets impacting travel flows and demand,” he said.

Shaikh Ahmad also cited other challenges during the year that impacted travel, including the UK’s vote to leave the European Union, Europe’s immigration challenges, terror attacks, currency fluctuations, and new policies regarding air travel to the US from Middle Eastern airports.

Meanwhile, Emirates airline reported an 82 per cent decline in its profits for the year to reach Dh1.3 billion. The airline’s revenues remained stable at Dh85.1 billion, as it carried 56.1 million passengers (up 8 per cent compared to last year).

Europe was the highest revenue-contributing region, with Dh23.9 billion in airline revenues coming from the continent.

Total operating costs increased by 8 per cent year-on-year, with fuel remaining the biggest cost component for the airline. Though average jet fuel prices fell slightly during the year, Emirates’ fuel bill increased by 6 per cent to Dh21 billion due to capacity increase.

The carrier received 35 new aircraft during the year, comprising of 19 A380s and 16 Boeing 777-300ERs. It also phased out 27 older aircraft, bringing Emirates’ total fleet count to 259 at the end of March.

From an operational perspective, Emirates launched six new passenger destinations, and added capacity to nine cities on its existing route network.

As for dnata, its profits crossed Dh1.2 billion for the first time, while revenues jumped 15 per cent to reach Dh12.2 billion. The growth was supported by new acquisitions in the US and in the Czech Republic.

During the year, Emirates Group invested Dh13.7 billion in new aircraft and equipment, acquisition of companies, technology, and staff initiatives.

Shaikh Ahmad said these investments will strengthen the group’s resilience, and allow it to adapt to the “volatile business climate and fast changing consumer expectations.”
As for dnata, its profits crossed Dh1.2 billion for the first time, while revenues jumped 15 per cent to reach Dh12.2 billion. The growth was supported by new acquisitions in the US and in the Czech Republic.

During the year, Emirates Group invested Dh13.7 billion in new aircraft and equipment, acquisition of companies, technology, and staff initiatives.

Shaikh Ahmad said these investments will strengthen the group’s resilience, and allow it to adapt to the “volatile business climate and fast changing consumer expectations.”