Emirates record results: Detailed revenue breakdown and peformance highlights

Emirates Airline’s revenues grew by 25 percent from last year to reach $14.8 billion. Airline profits of US$ 1.5 billion marked an increase of 51.9 percent over 2009-10’s profits of US$ 964 million.
 
Passenger Seat Factor, at 80.0 percent, indicates the airline’s highest ever, a remarkable achievement given a substantial increase in seat capacity (Available Seat Kilometres – ASKMs) of 13 percent. Overall capacity, measured in ATKM (Available Tonne Kilometres), rose 12.4 percent to 32,057 million tonne-kilometres.
 
Operating costs, at US$ 13.3 billion, were 22.7 percent higher than the 2009-10 financial year. This increase correlates with the rise in fuel prices and increased activity levels in addition to an overall growth in staff numbers and a rise in direct operating costs such as handling, in-flight costs and aircraft maintenance.
 
A sharp increase of 41.2 percent in the cost of fuel during 2010-11 at US$ 4.6 billion, accounted for a sizeable 34.4 percent of the airline’s total operating costs, close to the record highs witnessed in 2008-09. This increase is a direct result of the 26.5 percent hike in average fuel costs per US gallon, as well as higher overall consumption due to increased capacity.
 
Passenger yield increased by 8.5 percent to 28.3 fils per RPKM (Revenue Passenger Kilometre), up from 7 US cents in 2009-10.
 
During the year, in line with the airlines strategic growth plan, Emirates significantly increased its order for new aircraft, adding 32 additional Airbus A380s and 30 Boeing 777-300ERs. The combined value of these orders is US$ 13.4 billion and brings the airline’s total number of aircraft on order at the end of the financial year to 193, worth over US$ 66 billion.
 
Emirates took delivery of eight new aircraft during the year including one Boeing 777-300ER and seven of the airline’s flagship A380s expanding the airline’s fleet size to a robust 148 aircraft. Emirates remains the world’s largest A380 and Boeing 777 operator with 15 A380s and 86 Boeing 777s.
 
Expanding its global footprint the airline launched passenger services to six new destinations – Amsterdam, Prague, Al Medinah al Munawarah, Madrid, Dakar and Basra – as well as increasing frequency and capacity to a number of high-demand cities across multiple markets, most notably the US, Asia, Middle East and Africa.
 
Emirates continues to benefit from a diverse revenue base, with no single region contributing more than 30 percent of revenues. East Asia and Australasia led the way in 2010-11 with revenue growth of 30.9 percent at US$ 1.0 billion, Europe followed closely with an increase of 24.3 percent at US$ 769 million due primarily to three new passengers destinations commencing in the region and increased capacity through larger aircraft.
 
The Emirates A380 network was further developed during the year with three new destinations; Beijing, Hong Kong and Manchester as well as the re-introduction of the A380 service to New York.
 
Emirates continued to invest in its product with two new airport lounges, Shanghai and New Delhi, taking the total number of Emirates dedicated lounges to 28. In total Emirates has invested US$ 78 million in its global lounge network.
 
Employees were also a focus of the 2010-11 financial year with Emirates Airline increasing employee numbers by 5.9 percent to reach nearly 39,000 employees. Many of these new employees fall within the Cabin Crew and Flight Deck departments on account of the eight new aircraft delivered throughout the year; as well as in preparation for continued aircraft deliveries in 2011-12.
 
Emirates SkyCargo saw a strong increase in revenue up 27.6 percent to a record US$ 2.4 billionthanks to a worldwide rebound in cargo traffic. Cargo tonnage increased by 11.8 percent over the previous year to 1,767 thousand tonnes. Additionally freight yield per FTKM (Freight Tonne Kilometre) increased by 11.3 percent.  
 
Cargo revenue contributed 17.4 percent to the airline’s total transport revenue, yet again one of the highest contributions of any airline in the world with a similar fleet. During the year, Emirates SkyCargo introduced four freighter-only destinations, Almaty, Bagram, Campinas and Erbil. At the end of the financial year, the freighter fleet was seven – three on wet lease and four on operating lease.
 
Emirates Airline’s Destination and Leisure Management (D&LM) division saw package sales of US$ 299.7 million throughout the financial year, an increase of 10 percent on last year’s figures.
 
Marking another milestone, the Group’s Wolgan Valley Resort and Spa, Australia’s first conservation-based luxury resort, received an Overall Commitment to Excellence Award at the Leading Hotels of the World Awards, in addition to winning the Environment category.
 
For dnata the 2010-11 financial year saw major international expansion to become the world’s fourth largest air services provider.  
 
dnata’s revenue, driven by international expansion passed the billion dollar mark for the first time in its operating history reaching US$ 1.2 billion- up 39.4 percent from last year. The substantial increase in revenue is primarily a result of increased revenues from airport operations and cargo handling business lines in addition to the acquisition of Alpha Flight Group Ltd in December 2010.
 
During 2010-11 the third largest revenue stream for dnata was catering, jumping 438.3 percent to US$ 156.9 million thanks to the acquisition of Alpha. Although only accounted for since 31st December 2010, Alpha has sent 8.4 million meals into the skies from 61 airports in 11 countries. When Alpha is reported in entirety for the 2011-12 financial year dnata’s revenues are set to double over 2009-10 levels to around US$ 1.6 billion.
 
Despite the full year impact of the acquisition of Plane Handling and Alpha, dnata made its second largest profit in its operating history of US$ 152.6 million. dnata operating costs for the 2010-11 financial year were AED 3.9 billion (US$ 1.1 billion).
 
The number of aircraft handled by dnata during the year increased by 21.1 percent to 232,585, with the majority of this growth stemming from international business. Total cargo handled improved by 33.3 percent to 1,494 thousand tonnes.
  
Leading the way in innovation and highlighting the brand’s commitment to customer satisfaction, dnata travel services introduced a new iPad application during the year. The new application, created specifically for dnata provides clients with a quick and convenient way to make travel arrangements no matter where they are in the world.
 
Increasing productivity and streamlining efficiency, dnata installed a new, advanced GPS equipment tracking and monitoring system to significantly improve equipment allocation time for its ground handling operations at Dubai International Airport.
 
Breaking new ground dnata became the first airport service provider in Switzerland to obtain IATA's Safety Audit for Ground Operations (ISAGO) accreditation, designed to improve ground handling quality and safety. dnata’s operations in Pakistan also achieved the same certification during the year.
 
dnata’s average employee strength grew considerably by 35.1 percent to almost 18,000 staff on account of the newly acquired Alpha. In total 46.9 percent of dnata’s workforce is now based internationally, outside Dubai.
 
As of 31st March 2011, the Emirates Group and its subsidiaries employed 57,000 staff, representing 163 different nationalities.