Emirates bucks trend to record 24th year of profits --- where is PIA today?

[Al Bhatti]

May 11, 2012

Emirates bucks trend to record 24th year of profits

World's biggest carrier reports Dh1.5b net profit amid rising fuel costs

Emirates bucked the global trend again by reporting profits for the 24th consecutive year amid rising fuel prices that slashed the group's net profits by 61 per cent to Dh2.31 billion ($629 million) in 2011-12 financial year, down from Dh5.9 billion the previous year.

Emirates Group, which operates the world's biggest carrier of international passengers Emirates airline, recorded a 17.8 per cent growth in revenues to Dh67.4 billion, carrying 34 million passengers, an eight per cent increase over the previous year. It maintained a seat load factor of 80 per cent.

However, a 44.4 per cent increase in fuel costs totalling Dh24.3 billion wiped off the gains from revenue growth. Fuel accounted for 40 per cent of the company's costs last year.

Upward trajectory

"Achieving our 24th consecutive year of profit and maintaining an upward growth trajectory is an achievement that belies the industry norm," Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and Chief Executive of Emirates airline and Group, said in a statement.

"Successful business growth is not a matter of luck, it is the result of sustained and calculated investment.

"Every dirham that we earn is strategically ploughed back into our business and it is this foresight that has allowed the group to maintain such strong and consistent profitability."

The airline, meanwhile, suffered a 71.2 per cent decline in net profits to Dh1.5 billion for the year ended March 31 compared to the previous year's net profit of Dh5.38 billion.

The carrier said in a statement that the stifling cost of jet fuel impacted Emirates' bottom line with the airline's profit sitting significantly lower than the previous year.

Funding expansion

It added that the despite fundamental challenges, the group earned record revenue of Dh67.4 billion, up 17.8 per cent over the previous year.

During the year, Emirates invested Dh14 billion in new products as it added 22 aircraft to the fleet.

At the end of the year, its cash balance grew 9.5 per cent to Dh17.6 billion — providing a much needed cushion to fund its expansion that includes 232 aircraft on order, valued at $84 billion.

Acquisition strategy

Dnata, an Emirates Group unit and a provider of combined air services such as ground handling, cargo, travel, IT solutions and flight catering, made its highest ever profit in 52 years of operation at Dh808 million last fiscal year, on the back of its proven acquisition strategy, the company said.

It added that the unit derived 55 per cent of its revenue from its international operations, an increase of 17 percentage points over the previous year.

Emirates is well positioned to continue its profitability for a 25th consecutive year, according to the US-based aviation analyst Ernest Arvai of The Arvai Group.

"Emirates, having remained resilient during a difficult 2011, appears well positioned to execute its plans for additional growth and profitability in 2012," he told Gulf News.

He added that despite a reduction in profitability, Emirates has strong cash reserves and is well positioned to continue its growth in 2012. The airline's headcount increased 10 per cent to 63,000 employees.

"Emirates was hit like all airlines by fuel price rise, but very good growth in passengers and revenues is still being achieved despite tough market conditions in a number of areas," John Strickland, director of aviation consultancy JLS Consulting told Gulf News.

gulfnews : Emirates bucks trend to record 24th year of profits

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And our International Airline?

 

[Hyde]

PIA is also ranked on top if you start reading from bottom.

I am shocked to hear the new state of PIA. My cousin travelled to Pakistan for 2 weeks and he told me 75% of TV's in PIA weren't working. Out of many toilets almost none of them were in working condition and was telling me about a women who requested to check her TV and after hearing disappointing answer she asked the PIA staff to give her a blanket so she could possibly sleep if TV is not working and after 15-20 minutes of wait the airhostess came and said they don't have anymore blankets in stock and later the women got infuriated and was cursing the whole PIA staff for offering expensive tickets and no TV, No toilet and no blanket in possibly the most profitable route of London-Lahore.

Such is the state of PIA nowadays. When I travelled back in PIA in 2008 it was very comfortable airline and was very competitive to British Airways in terms of services at least.

 

[Panjabijutt]

Emirates - have travelled on it hundreds of times between the UK and Pakistan. Totally disappointed with them now and have started to use them less and less. They're main aim is to attract travellers from the "white" countries, such as Australia and New Zealand and South Africa. Thats where they have their best offers - I mean I pay the same amount for a ticket to/fro Pakistan as the aussies do between London and Australia!! Their Skywards program is also designed to reward them since last year. Whereas, I used to earn their Gold membership by flying six and half flights now I have to fly 15 return flights, however, the aussies can do it two or three flights!! Then there is the horrendous experience of having to transit thru Dubai.....its worse than Heathrow!!! The queues are a nightmare. The LONG walks from gates and between terminals is a chore after a long haul flight. The person who designed the airport without internal transport option should be shot or hung from his private bits.

PIA - lol what can I say.....its a necessary evil to use PIA domestically in Pakistan. I refuse to fly PIA unless as a last resort. The whole experience is a nightmare. The planes are decrepit. I have to queue for ages to check in. I get stopped and searched everytime I fly on PIA abroad. I have to go personally to change my ticket if req'd. Where as on other airlines I pick up the phone and change my ticket. I can check in an hour before the flight. I've flown on PIA from KHI-LHE last year and the plane was literally held together with masking tape!!! Having worked on aircraft, I know that I have seen planes which have been scraped/retired out of service in better conditions then the ones PIA uses!