The Emirates Group has announced its 29th consecutive year of profit and steady business expansion, despite a turbulent year for aviation and travel.
In its 2016-17 annual report, the group posted a profit of $670 million for the financial year ending 31 March 2017.
While the group’s revenue reached $25.8 billion, it’s cash balance dropped by 19 per cent to $5.2 billion, mainly due to the repayment of two bonds on maturity and ongoing high investments into its fleet and aircraft related assets.
Chairman, Emirates Group, His Highness Sheikh Ahmed bin Saeed Al Maktoum, said, “Emirates and dnata have continued to deliver profits and grow the business, despite 2016-17 having been one of our most challenging years to date.
“Over the years, we have invested to build our business capabilities and brand reputation. We now reap the benefits as these strong foundations have helped us to weather the destabilizing events which have impacted travel demand during the year – from the Brexit vote to Europe’s immigration challenges and terror attacks, from the new policies impacting air travel into the US, to currency devaluation and funds repatriation issues in parts of Africa, and the continued knock-on effect of a sluggish oil and gas industry on business confidence and travel demand.”
In 2016-17, the group collectively invested $3.7 billion in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives.
He said, “These investments will further strengthen our resilience, even as we extend our competitive edge, and adapt our businesses to the volatile business climate and fast changing consumer expectations.
“We remain optimistic for the future of our industry, although we expect the year ahead to remain challenging with hyper competition squeezing airline yields, and volatility in many markets impacting travel flows and demand.
“Emirates and dnata will stay attuned to the events and trends that impact our business, so that we can respond quickly to opportunities and challenges. We will also progress on our digital transformation journey.
“We are redesigning every aspect of how we do business, powered by an entirely new suite of technologies. Our aim is to deliver more personalised customer experiences, and seamless customer journeys, and make our operations and back-office functions even more efficient.”
