The Emirates Group recorded its 28th consecutive year of profit, with a new record profit of AED 8.2 billion (US$2.2 billion), ending the year up 50% from last and in a strong position despite global and operational challenges during this period.
“Against an unfavourable currency situation which eroded our revenues and profits, an uncertain global economic environment dogged by weak consumer and investor sentiment, as well as ongoing socio-political instability in many regions around the world, the Group’s performance is testament to the success of our business model and strategies,” said HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.
The Group’s revenue reached AED 93 billion (USD $25.3 billion), a decrease of 3% over last year’s results, and the Group’s cash balance increased strongly to AED 23.5 billion (USD $6.4 billion).
Sheikh Ahmed also said that lower oil prices had saved the airline around Dh 9 billion during the financial year.
“Our ongoing investments to develop our people and to our enhance business performance,enable us to react with agility to the new challenges and opportunities that every year brings. In 2015-16, the Group collectively invested over AED 17.3 billion (USD $4.7 billion) in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives. These will build on our strong foundations, extend our competitive edge, and accelerate our progress towards our long-term goals,” he explained.
The Group’s employee base across its more than 80 subsidiaries and companies increased by 13% to over 95,000-strong, representing over 160 different nationalities.
“Looking at the year ahead, we expect that the low oil prices will continue to be a double-edged sword – a boon for our operating costs, but a bane for global business and consumer confidence. The strong US dollar against major currencies will remain a challenge, as will the looming threat of protectionism in some countries,” he said.
“However, we enter the new financial year with confidence, backed by a robust balance sheet, solid track record, diverse global portfolio, and international talent pool. We will continue to evolve and grow our business profitably, and work even harder to meet and exceed our customers’ expectations,” Sheikh Ahmed continued. The continuing evolution and growth of these global businesses could result in more responsibility and workloads for both employers and employees. Business aspects like sorting out the payroll may become harder, but it doesn’t have to be. There are many ways for employers to effectively control their payroll, regardless of how big their business becomes. For example, they can look at this software from CloudPay, (cloudpay.net) which offers many different services that can help their payroll system remain efficient from all over the world. This will only help global businesses in the long run.
In line with the overall profit, the Group declared a dividend of Dh 2.5 billion ($681 million) to the Investment Corporation of Dubai.
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