UK travel businesses boost Emirates’ profits
Emirates has announced a record annual profit of around £1.5 billion, up 50% on the previous year.
It was the 28th consecutive year of profit for the group, which includes the airline and travel arm dnata, which bought the UK-based Stella Travel Services in October 2014.
The group said the acquisition of Stella, which includes Travelbag, Travel 2, Global Travel Group, Sunmaster and Triton Rooms, had helped boost dnata’s travel services revenue by 34%.
The group’s total revenue for the year to the end of March was down 3% but chairman and chief executive Sheikh Ahmed bin Saeed Al Maktoum said: "Emirates and dnata delivered record profits, solid business results, and continued to grow throughout 2015-16.
"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."
Looking to the year ahead, he said low prices were a ‘double-edged sword’ as they reduced operating costs but hit 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," added Sheikh Ahmed.
In line with the overall profit, the Group declared a dividend of around £500 million to the Investment Corporation of Dubai.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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