Emirates Group announced its financial results. Gulf News' Alexander Cornwell, Sarah Algethami, Zarina Fernandez and Irish Eden Belleza report:
11.15am: Emirates airline President Tim Clark tells reporters the airline will keep buying the existing model of the Airbus A380, the world's largest passenger aircraft, if a new version is not built. Emirates has been calling on the European plane maker to commit to building an updated, more fuel efficient version of the super jumbo.
Emirates chairman HH Shaikh Ahmed Bin Saeed Al Maktoum addressing the media at Emirates results press conference pic.twitter.com/LceUXIRcvj— Gulf News Business (@GulfNewsBiz) May 10, 2016
"As the first batch comes up for retirement we will want to replace them with more A380s ... whether that's enough to persuade Airbus to keep the line going is up to them really. They have got to sell more," Clark said.
Emirates is the single largest customer of the A380 with 77 in operation and a further 65 on order. Emirates airline is considering introducing premium economy to its fleet.
President Tim Clark told reporters there is a "business case" for a class between economy and business. "We're looking at all sorts of opportunities in terms of product development ... But clearly there is a business case for looking seriously at premium economy. That's not to say we're going to do it but we're looking at it," he said.
Emirates would be the first of the major Gulf carriers to introduce premium class if it went ahead with the decision. Neither Etihad Airways or Qatar Airways offer the product in their fleet.
Last year, Emirates introduced two class Airbus A380s featuring economy and business classes with a total of 619 seats. Emirates partner Qantas operates daily A380 services to Dubai from London and Australia featuring a premium economy product.
10.40am: It is Emirates highest ever profit and 28th year of consecutive profit.
Shaikh Ahmad "warns strong dollar against major currencies will continue to be a challenge" while low oil prices will be a double edged sword, reducing operating costs but bad for business sentiment globally.
Shaikh Ahmad talks about year ahead and fleet:
"Emirates group is moving into the next financial year with confidence," says Shaikh Ahmad.
"We will work even hard to meet and exceed our customer expectations," says Shaikh Ahmad.
The airline carried 51.9 million passengers, up 8 percent. Group travel and airport services unit dnata made Dh1.1 billion, up 10 per cent and its highest ever profit. Revenue rose 16 percent to Dh10.6 billion.
Shaikh Ahmad talks at the press conference:
10.24am: Emirates airline, one of the world’s largest carriers, made Dh7.1 billion for the full financial year ending March 31, 2016, up 56 per cent compared to the Dh4.6 billion it reported last year. Revenue fell 4 per cent to Dh85 billion.
Emirates’ growth was bolstered by weak oil prices that have more than halved over the past two years. But Shaikh Ahmad Bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates airline and Group, said a strong dollar hurt revenue and falling oil prices negatively affected the business climate.
The airline carried 51.9 million passengers, up 8 percent, while load factor fell 3.1 percentage points to 76.5 per cent.
Group travel and airport services unit dnata made Dh1.1 billion, up 10 per cent and its highest ever profit. Revenue rose 16 percent to Dh10.6 billion.
10.20am: Emirates Group, the parent company of Emirates airline, reported on Tuesday a record full-year profit as weak oil prices slashed operating costs at the airline.
The Group, which also includes airport and travel services operator, made Dh8.2 billion in the 12 months to March 31, compared to Dh5.5 billion a year earlier. Revenue fell 3 per cent to Dh92.9 billion due to the strong dollar.
10.13am: Emirates saved Dh9 billion from low oil prices, fuel bill accounted for 26% of operating costs.
10.05am: Emirates finished the financial year ending March 31 with 251 aircraft. 29 aircraft were added to the fleet in the 12 months to March 31 while 9 were retired over the same period. Emirates Group, the parent company of Emirates airline, is expected to announce its 28th consecutive year of profitability later on Tuesday morning.
Awaiting results
The Group will announce its financial results for the 12 months to March 31 at a press conference at its headquarters in Dubai at 10am.
Shaikh Ahmad Bin Saeed Al Maktoum, the Chairman and Chief Executive of Emirates airline and Group, said on Monday he was “optimistic” the numbers would be good.
He told Gulf News on April 26 “We should see … a good result for Emirates.”
In May 2015 when the Emirates Group reported its last financials it announced its second most profitable year ever.
The auditorium where the Emirates full year financial results will be announced this morning. Sarah Algethami/Gulf News
That year the Group made Dh5.5 billion ($1.5 billion) with a revenue of Dh96.5 billion while the airline made Dh4.6 billion with revenues of Dh88.8 billion.
It’s most profitable year was in 2010-2011 when the Group made Dh5.9 billion and the airline made Dh5.4 billion.
Low oil prices that have more than halved over the past two years are again expected to have a positive impact on the airline’s bottom line. Fuel is consistently Emirates’ single largest operating cost. Last year, Shaikh Ahmad said the airline saved Dh2 billion in operating costs as oil prices fell in 2014-2015.
The financial year ending March 31included Emirates launching the world’s longest flight from Dubai to Auckland, the start of the three year sponsorship deal of English football tournament the FA Cup and release of the now famous Jennifer Aniston ad campaign.
