Dubai – Mubasher: The Emirates Group on Thursday reported a 77% year-on-year increase in profits to AED 2.3 billion ($631 million) in the first six months of the fiscal year 2017/2018 on the back of growth in the company’s revenues.
The group's revenue rose 6% to AED 49.4 billion ($13.5 billion) in the first half of FY17/18 from AED 46.5 billion ($12.7 billion) in the comparative period of FY16/17, according to a company statement.
The Emirates Group achieved a “steady revenue growth and a rebound on profitability despite the continuing downward pressure on margins, a rise in oil prices, and other challenges for the airline and travel industry,” the group commented.
Cash position decreased to AED 18.9 billion ($5.2 billion) in the six-month period ended 30 September, versus AED 19.1 billion ($5.2 billion) as at the end of March.
The Emirates Group, which is fully-owned by Dubai government, begins its fiscal year on 1 April and which ends on 31 March.
“Our margins continue to face strong downward pressure from increased competition, oil prices have risen, and we still face weak economic and uncertain political realities in many parts of the world,” said Ahmed bin Saeed Al Maktoum, Emirates Group’s Chairman and CEO.
“Yet, the Group has improved revenue and profit performance. This speaks to the resilience of our business model, and the agility of our people,” the top official added.
dnata, the supplier of combined air services, recorded a 20% year-on-year growth in the first six months of FY17/18 to AED 659 million ($180 million).
This increase is attributable to focusing on “extracting operational, process and cost efficiencies across all business streams”, the Emirates Group stated.
dnata’s revenues and other operating income rose 7% to AED 6.3 billion ($1.7 billion) in H1-17/18, in comparison with AED 5.9 billion ($1.6 billion) in the corresponding period of FY16/17.
The revenues increase is the result of the growth in the company’s international airport operations business, inter alia.