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7/31/2019 Emirates Report
1/23
Akhtar Ali
Bilal Hassan
Maria Sarker
Krushangi KatkoriaRussell Mendonca
7/31/2019 Emirates Report
2/23
Profitability Emirates ended the financial year with an operating profit of
AED 3,565 million indicating a 56.6% rise from the previous
year.
Emirates profit attributable to the Owner for 2009-10 had
significantly improved to AED 3538 million from AED 686
million in the previous year.
0
1000
2000
3000
4000
5000
6000
2006-07 2007-08 2008-09 2009-10
Profit Attributable to the Owner in
AED millions
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2006-07 2007-08 2008-09 2009-10
Operating profit in AED
millions
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Revenue Revenue generated by the end of the financial year remained
stable at AED 42,477 million in comparison to AED 42,459
million in the previous year reflecting lower passenger and
cargo yields offset by increased traffic.
Passenger & Cargo revenue accounted for 94.6% of revenue.
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Emirates profit margin recovered from 1.6% in the previous
year to 8.1% in 2009-2010
0
2
4
6
8
10
12
14
2006-07 2007-08 2008-09 2009-2010
Profitability Margin in %
Profit Margin
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Expenditure
Emirates operating costs during the year 2009-2010 was AED 39,890
million, which was 2.7% better than the previous year.
The reason being due to a reduced jet fuel bill.
Employee CostGrew by 8.3% which compares with
16.9% growth in capacity.
Depreciation charge
Higher depreciation charge of 34.6%
on account of an increase in airline
fleet assets.
Jet fuel costs
AED 11.908 million comprised 29.9%
of operating cost.
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Traffic and Capacity
Aircraft departures increased by 12.4%
Eight A380 superjumbo aircraft in the fleet at 31sr March 2010 arevery popular with returning load and seat factors well above thenetwork coverage.
A380 serves 8 destinations, 5 of which were added in the currentfinancial year.
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Cash position
Emirates cashgenerated fromoperating activitiesat AED 8,328 million,
highest level everreached.
Operating cashmargin at 19.2% in
2009-2010 is 7.6%points better thanthe year 2008-2009.
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Net cash used in investing activities at AED 577 million is
mainly of account of the outflows of AED 3,416 on property,
plant and equipment.
Net amount of AED 2,982 million used in financing activities
on the outflows of settling borrowings and lease liabilities
including financing cost as well as dividends to the
ownership.
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Cash profit from
operations for the year
31st March 2010 wasAED 10638 million, up
28.4% over last year
which was the highest
level ever achieved.
Cash assets were up byAED 3,143 to AED 10,511
million at 31 March 2010.
Represents a healthycash asset to revenueratio of 7.2 percentagepoints better than theyear 2008-2009.
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Capital Expenditure
During the year 2008-2009, Emirates capitalexpenditure stood atAED 8053 million.
Primary capitalexpenditures comprised82.9% of the total capitalexpenditure.
Secondary capitalexpenditure amountedto AED 1378 million.
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Fleet acquisition
Emirates took 15
aircrafts.
Largest B777
operator, when it
took delivery of
its 78th B777
aircraft.
11 Boeing
10 B777-300ER
B777-200LR
4 Airbus
4 A380
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Financing
Raised a total of AED 8776 million.
Eight B777-300ER aircraft funded through finance leases.
First ever financing of Boeing aircraft was through capital markets
guaranteed by the US Export-Import bank on finance lease.
It raised AED 1520 million to finance 3 Boeing 777-300ERs.
Out of the 4 Airbus A380, 2 were financed as finance leases and 2
through sale and lease back transaction using the German KGmarket.
Closed 2 sale and leaseback transactions for 8 spare engines and 2B777-200 classic aircraft.
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DebtTotal borrowing &
lease liabilities:
AED 19,605, up AED
3,093 (18.7%) from
the previous year.
Ratio of Borrowings &
lease liabilities to totalequity - 112.2%
(2009/10) compared to
106% (2008/9).
Net Debt Equity Ratio improved to 52%when compared with 58.7% of the previous
year.
After capitalizing aircraft operating leases
the same ratio 158.5%(2009/10)
Reason
Borrowings offset
by cash assets.
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Currency & Interest Rate Risk
Borrowings/Lease liabilities(net of cash)
83% fixed interest rate 17% floating interest rates
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1% point increase in interest rates would increase the interest
charges(net of interest income) by AED 74 million the next
financial year.
2009/10 2.5%
2008/09 3.5%Interest rate on borrowings/lease liabilities
Emirates managed its currency exposure by usage of :
Prudent hedging solutions
Currency swaps
Options & natural hedges
Pound sterling 14%
Euro 24%
Australian Dollar 29%
Newzealand Dollar 81%
Japanese Yen 91%
Hedging Coverage
as of 31st March
2010.
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Employee strength and productivity The Average number of
employees in the airline grew by
649 (2.3%) to 28,686 despite the16.9% growth in capacity. The
increase in airline employee
numbers were mainly in the
cabin crew and flight deck
categories on account of 15 new
aircraft added during the year.
Employee productivity for the
airline measured in terms of
revenue per employee remained
relatively flat at AED 1.5 million (
2008-09: AED 1.5 million)
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Capacity per airline
employee was sharply upby 14.3% or ATKM 994thousand compared withATKM 870 thousand in2008-09.
Similarly, load carried perairline employee alsoincreased by 17.5% toRTKM 665 thousand from
RTKM 566 thousand inthe previous year.
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Fleet Information
Emirates airlines has anadditional 15 aircraftsbringing the total no. ofaircrafts to 142 compared
to previous years 127.
Emirates operates one of the
youngest fleet in the industrywith an average age of 69 months
compared with an industry
average of 190 months.
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19/23
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Sports Sponsorships
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Emirates presents representativesfrom 40 travel agencies in Dubai &the Northern Emirates with
contracts granting access to travelsolutions from EmQuest andSabre.
Emirates launches the BestPrice marketing campaign in the
UAE.
Emirates wins the best in-flightentertainment at the world airlineawards 2009 for the 5thconsecutive year.
Emirates simplifies its baggagepolicy and offers an additional10kg to customers traveling in allcabins.
Emirates begins A380 operationsto Bangkok & Toronto - Theaviation worlds first superjumbocommercial services to both cities.
Emirates becomes the first airlineto order the HoneywellSmartRunway & SmartLandingsafety systems which give pilotsvocal & visual alerts about the
stability of an aircraft on approach& landing.
Emirates launches a fuel savinginitiative designed to saveAED35million (US$9.5million) ayear & reduce annual carbon
emissions by 43,250tonnes.
Mobile Emirates.com goes liveallowing customers to access thewebsite through mobile phones orPDA.
Highlights for the year 2009-2010
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The latest Emirates loungeopens in Dusseldorf.
Emirates begins flights toDurban International Airport,becoming the only carrierflying international routes ondaily basis out of the SouthAfrican city.
Emirates half year profits ofAED 752 million are 165% upon the same period theprevious year, and buck theworldwide industry trend.
The millionth Emiratespassenger uses their ownmobile phone on an aircraftequipped with theAeroMobile system.
Both Emirates and AirbusA380 full flight simulatorsare certified to Level D-the
highest qualification grantedby the UK civil AviationAuthority.
Emirates teams up withVirgin Blue to launch the
Emirates Visit AustraliaPass.
Emirates became the worldslargest operator of B777s
with the delivery of its 78th
B777 aircraft.
The latest Emirates loungeopens in Dusseldorf.
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