UAE – Mubasher: Emirates Group has reported a sharp decline of 44% year-on-year in its profits for the first quarter of 2019.
Profits amounted to AED 2.3 billion ($631 million) in the three-month period ended 31 March 2019, compared to AED 4.11 billion in Q1-18, according to the airline’s 2018/2019 annual report released on Thursday.
Revenue increased 7% year-on-year to AED 109.3 billion in the January-March period of 2019, the Dubai-based carrier said.
Meanwhile, cash balance fell by 13% to AED 22.2 billion in Q1-19 due to large investments into the business, including major acquisitions and payment of 2018 dividends worth AED 2 billion.
The Emirati group announced paying AED 500 million ($136 million) in dividends to its shareholder to the Investment Corporation of Dubai (ICD).
Moreover, the group has invested around AED 14.6 billion ($ 3.9 billion) to purchase new aircraft and equipment, companies, and modern facilities and technologies in fiscal year 2018/2019, exceeding FY17/18 expenditure bill of AED 9 billion (US$ 2.5 billion).
In February, Emirates unveiled a commitment for buying 40 A330-900s and 30 A350-900s worth a combined $21.4 billion (AED 78.5 billion) under an agreement signed with Airbus. The planes are set for delivery as of 2021 until 2024.
The airline will also receive 14 new aircraft of A380 during 2019 throughout 2021, therefore, total orders of A380 reach 123.
Furthermore, the total capacity of the airline of passengers and shipments has reached 63.3 available tonnes kilometres (ATKM) in FY18/19.
Emirates has also received 13 new aircraft in FY18/19, including seven A380s and six Boeing 777-300ERs, and is set to get the next order of 777 aircraft in 2022 when it receives the first plane of the Boeing X777 order.
