#84
13-May-10
The Headlines
Emirates revenue stable, profits strong in FY2010
Emirates denies financial assistance from the Dubai Government
Emirates has no interest in global alliances, IPO up to Government
Emirates to repay USD500m in cash if refinancing terms cannot be reached
Afriqiyah Airways' A330 crashes from on Johannesburg-Tripoli flight
Lufthansa to deploy A380s to Johannesburg from Oct-2010 - report
Emirates Sky Cargo reports yields back to 2008 level
Perspective
The Emirates profit machine keeps on rolling
Emirates has declared a USD964 million profit (AED3,565 million) for the 12 months to 31-Mar-2010, an impressive performance against a backdrop of the worst global recession in generations. Chairman and CEO of the carrier, Sheikh Ahmed bin Saeed Al Maktoum, described the period as the airline’s “toughest year”. But a profit approaching USD1 billion is a tough year most of its competitors would be happy to endure. Whatever anyone says about Emirates being government owned, it is unavoidably an increasingly powerful model and extremely cost effective, while being able to drive better than average yields. [click here for the full report]
Quote of the Day
If you carry your childhood with you, you never become older - Abraham Sutzkever
Gulf Cooperation Council States
Emirates revenue stable – consolidated financial highlights for the 12 months ended 31-Mar-2010:
Reveue:
Emirates: USD11,564 million, stable year-on-year;
Transport: USD10.9 million, -0.6%;
Excess baggage: USD75.7 million, -20.3%;
Sales of goods: 470.2 million, +10.5%;
Dnata: USD849.7 million, -1.2%;
Airport operations: USD422.9 million, +7.3%;
Cargo: USD165.3 million, +13.2%;
Total operating costs:
Emirates: USD10,860 million, -2.7%;
Fuel: USD3,242 million, -17.6%;
Labour: USD1,727 million, +8.3%;
Dnata: USD708.1 million, -4.2%;
Operating profit:
Emirates: USD970.5 million, +56.5%;
Dnata: USD152.2 million, +19.7%;
Net profit:
Emirates: USD963.2 million, +415.7%;
Dnata: USD166.9 million, +20.9%. [more]
Overall load factor: 66.8%, +1.7 ppt;
Overall breakeven load factor: 64.4%, +0.3 ppt;
Passenger numbers: 27.5 million, +20.8%;
Seat factor: 78.1%, +2.3 ppts;
Premium: -6.2 ppts;
Economy: +3.6 ppts;
Yield per RPK: USD 7.11 cents, -18.7%;
Cargo volume: 1.6 million tonnes, +12.2%;
Cargo yield per FTK: -18.9%. [more]
*Based on the conversion rate at USD1 = AED3.6732
Emirates Group: “It has been an exceptional year of continued profitability against a backdrop of the worst global recession in generations. The first half of the financial year however, was extremely challenging as the world continued to grapple with the economic crisis. Our pioneering spirit and ability to adapt in adverse conditions helped us to push through this harsh economic climate with an extremely strong performance in the latter part of the year,” Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive. Source: Emirates Group, 12-May-2010.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett