In March, Etihad reported its terrible financial results from last year, when the airline lost $ 1.28 billion and had its losses over the past three years to nearly $ 5 billion. The worst part is that this came after Etihad was already involved in a significant cost savings program, which shows you how much work they have in front of them.
Today, Emirates has today revealed its financial results for the last fiscal year, ending March 31, 2019. They did much better than Etihad.
Emirates Report $ 237 Million Profits
I'll just stick to Emirates results here, instead of Emirates Group results, which include dnata (their airline service provider). Emirates reported a profit of $ 237 million over the past year:
- The profit of Emirates is down 69% over the previous year
- Profit of $ 237 million represents a 0.9% profit margin
] Why Emirates Profits Reduced
Emirates Attribute the Reduced Profit to the Following:
- Rigid Competition in Key Markets
- Impervious Currency Effects, as the USD strengthened against many of the Emirates key markets, as they estimate cost them $ 156 million; interesting last year Emirates estimates a $ 180 million positive impact on currency fluctuations
- Increased fuel costs, as the average price of jet fuel increased by 22%, having increased by 15% the year before; Emirates fuel bill for the year was $ 8.4 billion, accounting for 32% of its operating costs
Emirates new 777-300ER first class
Key figures for Emirates performance
Let's look at a Get other key figures for Emirates for this past year:
- Revenue increased by 6% to $ 26.7 billion
- The seat capacity increased by 4%
- Emirates increased their fleet by a net of two aircraft when they took delivery of 13 aircraft (seven A380 and six 777-300ER) and retired 11 aircraft
- The average fleet age of Emirates 270 aircraft is 6.1 years
- Emirates carried 58.6 million passengers (up 0.2%)  The average load factor was 76.8%, slightly weak from 77.5% the year before
- Average passenger return increased by more than 3% to 7.1 US cents per passenger passenger kilometer
It is also interesting to note how different regions contributed to Emirates revenue, without reg ion contributing more than 30%:
- Europe generated $ 7.7 billion in revenue (up 6%)
- East Asia and Australasia generated revenues of $ 7.2 billion (up 5%)
- America raised $ 3.9 billion (up 8%)
- ] Africa generated $ 2.8 billion (up 9%)
- Gulf and Middle East revenues increased by $ 2.3 billion (down 3%)  Income in West Asia and Indian Islands generated $ 2.2 billion (up 6%)
Emirates took delivery of their last 777-300ER in the past year
Is this all just fake math?
When I write about the financial properties of the golf boats, there is always the question of this being all just imaginary mathematics, given that golf boats are state owned.
US airlines have probably spent millions of dollars convincing us that these are heavily subsidized airlines that are losing billions of dollars.
My personal task is that these results are mostly accurate. After all, Emirates is independently audited according to international standards for financial reporting.
However, it has not been denied that airlines like Emirates have benefited from any thing over the years:
- No doubt that they have had easier access to finance on the account of being state-owned, which has given them the opportunity to to grow as much and as fast as they have
- They have much lower operating costs than other airlines, as they mainly have the same owner as the airport, ground handlers, caterers, etc.
I think Emirates is " legally "profitable. The problem with the A380 for most airlines is that they have not been able to scale their operations in a way that works. Emirates has been able to scale its route network as opposed to any other airline.
Obviously, Etihad and Qatar have not the same success, as both airlines lose a lot of money.
While Talking about the Benefits of Airlines Because of the countries they are based on, we need to keep in mind how US airlines have benefited from bankruptcy protection, at the expense of employees and creditors (just ask US airline members a few decades ago about their pensions).  Bottom Line
Overall, Emirates results for the past year are quite impressive, especially when considering currency issues and increased fuel prices they've worked with. While their rivals continue to lose money (Etihad because they are a basket case, and Qatar because of the blockade, and some other factors), Emirates has upgraded its grid in a way that makes sense.