Emirates Group, the parent company for the largest airline in the Middle East, Emirates, released its annual results overnight, which shows a surge in profit for its airline operations.
Revenue for Emirates Airline increased 7% to US$24.2 billion in the last financial year. An 11% increase in passenger traffic (partly fueled by the delivery of 24 new aircraft), along with a 79.6% seat load factor across the airline would have contributed greatly to the increase in revenue.
The airline also reported profit of US$1.2 billion, which it attributed in part to external factors such as the collapse in the fuel price. As a private company the Emirates Group is not required to release financial reports but it is considered best practice in Dubai for International Financial Reporting Standard to be observed.
Orlando, which launches in September will be Emirates tenth United States destination. We’ve previously profiled competitor Qatar Airways’ new services into the United States.
The rapid expansion of Middle Eastern carriers, has caused the chagrin of a number of other airlines, notably those in the United States. Gary Leff over at View From the Wing wrote an excellent piece a couple of months ago detailing why most of their complaints are a fallacy. In any event, the Wall Street Journal has quoted the chairman and chief executive of Emirates stating that the US airlines “will not stop us from doing what we are doing”.
Emirates has plans in the pipeline to refurbish their first class seating to compete with in-country rival Etihad Airways. We previously reviewed Emirates’ current 777-300ER first class seating on a flight between Melbourne and Singapore.
Emirates has enjoyed immense growth over the past 15 years. As the world’s largest international carrier by traffic, and with the largest Airbus A380 and Boeing 777 fleets in the world, Emirates is poised to provide continued competition for legacy carriers. Indeed, Emirates have more international capacity into many of the world’s major cities than even their national carriers do. In some countries such as India, Emirates has almost become the de-facto national carrier for international flights.