Emirates Group posts record profits

The Emirates Group reported its 20th consecutive year of net profit, notching a new profit record despite soaring oil prices and challenging business conditions in the second half of its 2007-08 fiscal year.

Group net profits increased 54.1 per cent to AED 5.3 billion (US$ 1.45 billion) for the financial year ended March 31, 2008, on revenues of AED 41.2 billion ($ 11.2 billion) compared to the previous year's AED 31.1 billion ($ 8.5 billion).

The Group's net margin improved to 13.2 per cent from 11.4 per cent in the previous year.

The Group also retained a robust cash balance of AED 14.0 billion ($ 3.8 billion), compared with AED 12.9 billion ($ 3.5 billion) the previous year. Emirates will pay a dividend of AED 1 billion ($ 272.5 million) to its owner, the Government of Dubai. In 2007-08, the Group estimates a direct contribution of AED 22 billion ($ 6 billion), and another AED 25 billion ($ 6.8 billion) in indirect contribution to the UAE economy.

The 2007-08 Annual Report of the Emirates Group - comprising Emirates Airline, Dnata and subsidiary companies - was released in Dubai at a news conference hosted by Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group.

The Group's latest record performance reflects its success in growing customer demand through the strategic expansion of its business operations across six continents, supported by ongoing investments in the latest technology, products and customer service while keeping a tight rein on costs.