Dubai-based Emirates airline said on Wednesday its profit in the last fiscal year rose 62 per cent despite higher fuel costs, as it boosted both passenger and cargo numbers.

The Emirates Group, comprising Emirates Airline, Dnata and subsidiary companies, has reported its 20th consecutive year of net profit, notching a record Dh5.3 billion ($1.45 billion) for the financial year ended March 31, 2008, with a jump of 54 per cent, said Sheikh Ahmed bin Saeed Al-Maktoum, chairman and chief executive, Emirates Airline and Group.

The revenue soared to Dh41.2 billion ($11.2 billion) compared to the previous year’s Dh31.1 billion ($8.5 billion). The group net margin improved to 13.2 per cent from 11.4 per cent in the previous year.
 
The group also retained a robust cash balance of Dh14 billion ($3.8 billion), compared with Dh12.9 billion ($3.5 billion) the previous year. Emirates will pay a dividend of Dh1 billion ($272.5 million) to its owner, the Government of Dubai.

“It was another record year for the Group in spite of a challenging business climate, particularly in the second six months where the soaring cost of jet fuel made a big dent, although the impact was partly offset by other operating gains," Sheikh Ahmed said.

In 2007-08, the Group estimates a direct contribution of Dh22 billion ($6 billion), and another Dh25 billion ($6.8 billion) in indirect contribution to the UAE economy.
 
The Group’s latest record performance reflects its success in growing customer demand through the strategic expansion of its business operations across six continents, supported by ongoing investments in the latest technology, products and customer service while keeping a tight rein on costs.

"This is illustrated by the 21.2 million passengers who flew with Emirates in the latest financial year, 3.7 million more than in the previous year; as well as the expansion of Dnata’s international ground handling operations to 17 airports in seven countries," he added.
 
“Despite the long-term forecast of a decrease in the number of passengers travelling in First and Business class, I am happy to report that Emirates once again bucked the trend and boosted our seat factor in the forward cabins."

He pointed out that the fuel costs remained the top expenditure for the 4th consecutive year, accounting for 30.6 per cent of total operating costs compared with 29.1 per cent the previous year and 27.2 per cent the year before. 
 
In total, the fuel risk management has saved in excess of Dh3.7 billion ($1 billion) since the financial year 2000-01.
 
Sheikh Ahmed highlighted some major milestones for the Group which included the new Emirates Group Headquarters; the launch of 11 new passenger and freighter destinations including Emirates’ first South American destination; and the massive 2007 Dubai Air Show aircraft order worth $34.9 billion.
 
He said the biggest challenges will be to find more pilots, engineers, cabin crew and skilled staff across its various business units.

Sheikh Ahmed also reiterated the Emirates Group’s support for Dubai’s new low cost airline which has been established as a separate entity from the Emirates Group.

On competition in the region, he said, "This is a big cake and admittedly, Emirates has a big slice of it, but there is plenty for the other airlines and we welcome them to the region.”-TradeArabia News Service