Emirates Half Year Profits up 68% as KQ Posts KES 4b Loss
The Emirates Group has today announced a US$ 575 million (KES 48.88 billion) net profit for the first six months of its current fiscal year ending 30th September 2012, a 68% growth from the US$ 343 million (KES 29.16 billion) reported on 30th September 2011. The airline has remained on the profit making ranks despite continued global economic pressure and continued high fuel prices.
The Group’s revenue and other operating income rose to US$ 10.4 billion (KES 884 billion) an increase of 16% over the last year’s results. According to Emirates, this constitutes the first time in the Group’s history that revenue surpassed the US$ 10 billion (KES 850 billion) mark in a six month period. The Group’s cash position on 30th September 2012 stood at US$ 4.1 billion (KES 348.5 billion), compared to US$ 4.8 billion (KES 408 billion as end of March 2012. The airline has attributed the KES 59.5 billion difference in the cash balance a bond repayment in June 2012.
“The Emirates Group half-year performance is the result of hard work and our drive to stay on course and continue to grow despite the precarious marketplace,” said His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group. “We have continued to invest in the infrastructure of both Emirates and dnata and it continues to pay off.”
Increase staff
Even with a challenging operating environment, the Group continued to invest in and expand on its employee base, increasing its overall staff count by more than 8% in just six months to nearly 68,000.
During the first six months of the fiscal year Emirates received 13 wide-body aircraft, including two A380s and ten Boeing 777s and one freighter, with more than 15 new aircraft scheduled to be delivered before the end of the financial year (31 March 2013). As the fleet increased, Emirates further invested in its network by adding five new destinations that have joined the 10 new routes added since 30 September 2011, for a total of 15.
Kenya Airways
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A Kenya Airways Embraer E-190. The Airline has bought 10 of such planes to be delivered over the next 8 months. (Image: Jetphotos)[/caption]
The Kenyan National carrier has been flying through turbulent skies at a time when the airline is undergoing a growth and expansion program.
In its Half year ending 30th September 2012, Kenya Airways reported KES 4.7 billion net loss. KQ which recently resorted to cost cutting measures by sacking employees attributed the loss to reduced number of passengers and high fuel prices.In the same period in 2011, the airline reported a KES 2 billion net profit.
Kenya Airways turnover dropped 9.3% to KES 49.8 billion in the six months to September 2012, down from KES 54.932 billion attributed to low passenger numbers on its local and key international routes. Drop in passenger numbers pushed KQ to close business on the Rome-Nairobi route earlier in the year.
Kenya Airways is on an expansion program plans to double its fleet by 2015 and is among other problems facing pilot shortage, suits from laid off employees and stiff competition on both its local and international operation routes.
