Emirates first-half profit climbs 111%!

• Emirates airline's profit during January - June 2017 period climbed to Dh1.7 billion.

Emirates Group on Thursday said its 2017 first-half profit climbed 77 per cent to Dh2.3 billion while revenue rose 6 per cent to Dh49.4 billion due to capacity optimisation and efficiency initiatives, easing of strong US dollar, and steady business growth.

In a statement, the Dubai-based group said Emirates airline profit during January-June 2017 period climbed 111 per cent to Dh1.7 billion and revenue climbed 6 per cent to Dh44.5 billion as it carried 29.2 million passengers during the first half, reflecting a growth of 4 per cent with an overall capacity expansion of 2 per cent. The group further said dnata revenue up 7 per cent to Dh6.3 billion and profit soared 20 per cent to Dh659 million during the 2017 first-half period. Dnata handled 330,317 aircraft, up 11 per cent, in addition to 1.5 million tonnes of cargo handled that reflected a growth of 25 per cent.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group said: "A lot of the credit for our 2017-18 half-year results goes to our talented workforce who have worked hard to improve our business performance, and address our challenges without compromising on quality and service.

"Our margins continue to face strong downward pressure from increased competition, oil prices have risen, and we still face weak economic and uncertain political realities in many parts of the world. Yet, the Group has improved revenue and profit performance. This speaks to the resilience of our business model, and the agility of our people," he said.

The group saw steady revenue growth and a rebound on profitability compared to the same period last year, in spite of the continuing downward pressure on margins, a rise in oil prices, and other challenges for the airline and travel industry.

Profitability rebounded after a low during the same period last year, with the group reporting a 2017-18 half-year net profit of Dh2.3 billion, up 77 per cent. This result was driven by capacity optimisation and efficiency initiatives across the company, steady business growth, and a more favourable foreign exchange situation compared to the same period last year.

The group's cash position on September 30, 2017 was at Dh18.9 billion compared to Dh19.1 billion as at March 31, 2017.

"The easing of the strong US dollar against other major currencies helped our profitability. We are also seeing the benefit from various initiatives across the company to enhance our capability and efficiency with new technologies and new ways of working. Moving forward, we will continue to keep a careful eye on costs while investing to grow our business and provide our customers with world-class products and services," Sheikh Ahmed said.

In the past six months, the group's employee base reduced by 3 per cent compared to March 31, 2017, from an overall staff count of 105,746 to 102,669. This was largely a result of natural attrition together with a slower pace of recruitment, as various parts of the business adopted new technologies, streamlined business processes and re-allocated resources.