In its 2016-2017 financial year, the biggest Middle East carrier, Emirates Group has announced its 29th consecutive year of profit and steady business expansion, despite a turbulent year for aviation and travel industry.
The Emirates Group posted an AED 2.5 billion ($ 670 million) profit for the financial year ending March 21, 2017, down 70 percent from last yearâ€™s record profit. The Groupâ€™s revenue reached AED 94.7 billion ($ 25.8 billion), an increase of 2 percent over last yearâ€™s results, and the Groupâ€™s cash balance decreased by 19 percent to AED 19.1 billion ($ 5.2 billion) mainly due to the repayment of two bonds on maturity and ongoing high investments into its fleet and aircraft related assets.
The company said that in line with the current business climate and to support the future investment plans of the Group, no dividend payment would be made to the Investment Corporation of Dubai (ICD) for 2016-17.
Commenting on the result, His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: â€œEmirates and dnata (a subsidiary of the group) have continued to deliver profits and grow the business, despite 2016-17 having been one of our most challenging years to date.
â€œOver 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 destabilising events which have impacted travel demand during the year – from the Brexit vote to Europeâ€™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.â€
According to a statement from the company, in 2016-17, the Group collectively invested AED 13.7 billion ($ 3.7 billion) in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives.