Emirates Group reported revenue of AED 53.3 billion (US $ 14.5 billion) for the first half of the current fiscal year (2019/2020) ending September 30, 2019, a decrease of 2% from the same period last year. Revenue was AED 54.4 billion ($ 14.8 billion).

The slight decline in revenue was mainly due to planned seat capacity reductions during the 45-day closure of the Dubai International Airport South Runway and unfavorable currency fluctuations in Europe, Australia, South Africa, India and Pakistan.

The Group said in a statement yesterday that profitability rose 8% compared to the same period last year, where the Group achieved during the first half of the financial year 2019/2020 net profit of 1.2 billion dirhams ($ 320 million). The improvement in profits was primarily due to a 9% drop in fuel prices compared to the same period last year, but gains from lower fuel costs were partially eroded by negative currency movements. The Group's cash balances stood at AED 23 billion as at 30 September 2019, compared to AED 22.2 billion at 31 March 2019.

Positive performance

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, said: “The Emirates Group achieved a positive performance during the first half of the fiscal year 2019/220 by adapting our strategies to overcome difficult working conditions and social and political unrest. In many global markets. Emirates and Dnata have made significant efforts to minimize the impact of the planned maintenance of the Dubai International Airport runway on our businesses and customers. The right to take advantage of various opportunities ».

He added: “The decline in oil prices was a positive factor, as we saw the fuel bill decreased by 2 billion dirhams compared to the same period last year, but the unfavorable movements of exchange rates ate about 1.2 billion dirhams of our profits.”

“It is difficult to predict global developments, but we expect the airline industry to continue to face adverse conditions over the next six months, as well as intense competition that will put further pressure on revenue and profit margins. But our focus in the Emirates Group will remain focused on developing our business, and we will continue to invest in new capabilities that enhance the performance of our employees and allow us to continue to provide better products, services and experiences to our customers. ”

Group employees

During the past six months, the number of employees of the Emirates Group has remained unchanged at 31 March 2019, reaching 105,315 employees, in line with the Group's business plans and activities, and reflects the various internal programs to improve efficiency through the adoption and application of new technologies and methodologies. In many departments of the Group, what contributed to the efficiency of operations, and redistribution of available resources.

"Fly Emirates"

During the first six months of the current fiscal year, Emirates has received three new Airbus A380s, and three more of the same model will be delivered before the end of the 2019/2020 fiscal year.

Six aircraft have been decommissioned and two more will be out until March 31, 2020. The long-term strategy, based on investment in the latest wide-body aircraft, has allowed the airline to improve overall efficiency, minimize emissions and provide outstanding customer experiences.

Emirates continues to offer its customers the best options for traveling around the world by stopping at only one stop in Dubai. During the first six months of the current fiscal year, Emirates launched two new passenger services: Dubai / Bangkok / Phnom Penh and Dubai / Porto (Portugal). September 2019, Emirates' global network covered 158 destinations in 84 countries across six continents, with a fleet of 267 aircraft, including cargo planes.

Emirates has continued to develop its partnership with flydubai as both airlines continue to benefit from the integration of their airline networks to improve flight schedules, connect more international cities through Dubai, and open new routes including Naples (Italy) and Tashkent. (Uzbekistan) in the first half of fiscal year 2019/2020.

«Skywards»

Customers will also benefit from more benefits through a single Emirates Skywards loyalty program. Passengers traveling with Emirates or flydubai via Dubai International Airport can now join their flights quickly and smoothly. »Currently 22 flights from Terminal 3 dedicated to Emirates flights.

During the period from April 1 to September 30, 2019, Emirates carried 29.6 million passengers, a decrease of 2%, while passenger revenue grew by 1%, compared to the same period last year. Cargo volumes were down 8% to 1.2 million tonnes, and revenue fell 3%. This reflects the difficult working environment for air cargo in the context of global trade tensions and unrest in some major shipping markets.

Net profit

In the first half of the current fiscal year 2019/2020, Emirates' net profit was AED 862 million (US $ 235 million), a growth of 282% over the same period last year. Including other operating income, AED 47.3 billion, down 3% from a year earlier, to AED 48.9 billion. This is due to increased flexibility in seat capacity and improved seat solvency, despite higher ticket prices, reflecting high levels of customer demand for Emirates products.

Emirates' operating costs were down 8%, while total capacity was down 7%. On average, the cost of fuel decreased by 13% compared to the same period last year, due to the decline in crude oil prices (down 9% compared to the same period last year), in addition to the reduction of fuel consumption due to the closure of the runway of Dubai International Airport 45 days. Fuel continued to account for the largest share of the cost (32% of the carrier's operating cost), compared with 33% in the first half of last year.

«Dnata»

Dnata has continued to strengthen its global capabilities in ground handling, catering and travel, with operations in more than 35 countries. In the first half of fiscal year 2019/2020, dnata's international operations contributed more than 72% of its total revenue, compared with 68% during the same period last year.

Dnata's revenue, including income from other operations, was AED 7.4 billion, a 5% growth over the same period last year, when it was AED 7 billion. This performance was driven by strong business growth and global expansion, particularly in catering.

Dnata's overall profit fell 64% to AED 311 million compared to last year's results, which included a profit of AED 321 million from a single transaction in which dnata's 22% stake in Hogg Robinson Travel Management Group HRG was sold. ». Dnata's profits in the first half of the current fiscal year 2019/2020 were also affected by the bankruptcy of Thomas Cook, one of its main clients in dnata Travel and Tourism in the UK, resulting in a loss of AED 84 million in intangible business and assets. .

Dnata Airport Services maintained its position as the largest contributor to dnata's revenue, reaching AED 3.6 billion, a slight increase over the first six months of last fiscal year. The total number of aircraft that handled «Dnata» handling services in all its work sites 351 thousand and 194 aircraft, and recorded cargo handled 1.5 million tons, a decline of 6% from the same period last year.

Self - growth

The self-growth of international ground handling, winning large contracts at various Dnata operations centers in the United States, and improved performance in markets such as Italy, Singapore, Switzerland and Iraq, contributed to the increase in dnata revenues and offset the negative impact of currencies by AED 86 million.

Dnata in the UAE acquired Dubai Express, a freight forwarding company, boosting revenues in the first half of the fiscal year 2019/2020 and helping reduce losses from the 45-day runway closure.

Dnata Travel Services' contribution to revenue was AED 1.8 billion, a growth of 7% over the same period last year. Total travel sales remained flat at AED 5.9 billion.

New acquisitions, including Germany's Tropo and Dunya Travel, boosted revenues, offsetting weaker demand in other major travel markets, as well as the negative impact of the US dollar against the euro and the pound. Sterling.

Dnata Aircraft Catering

Dnata's catering operations contributed AED 1.8 billion to total revenue, growing by 54%. The number of meals provided during the first six months stood at 51.9 million, an increase of 67% compared to the first half of last year.

This growth is attributable to the contribution of dnata's recently acquired suppliers in Australia (Q Catering Limited, Snap Fresh Pty Limited), the United States (121 Inflight Catering), and the expansion of its catering facilities. Dnata has the United States, including Houston, Boston and Los Angeles.

Total energy

During the first six months of the fiscal year, total capacity, measured in tonnes available, multiplied by the number of kilometers traveled by ATKM, fell 7% to 29.7 billion tonnes as a result of the closure of the Dubai International Airport runway, and the reduction of flights over 45 days. Passenger capacity, measured by the number of seats available times ASKM, has been reduced by 5%. Passenger traffic, measured by revenue per passenger per kilometer, also declined by 2%, while seat solvency increased to 81.1%, compared with 78.8% last year.

- The Group's improved profit was due to a 9% drop in fuel prices.