DIRECT AND INDIRECT REPORT

Emirates Airlines

Resource Person Sana Rana

Group Members
Sawera Zaka
Mahnoor
Sadia Fayyaz
Amna Moheen
Maidah Amjad
 DIRECT APPROACH

In the direct approach, the company addresses challenges or pursues objectives head-on. This
involves clear and straightforward strategies without intermediaries.

Direct Approach Report on Emirates Airlines: Financial Statements Analysis

Emirates Airline is one of the biggest airline in the world which is based in Dubai, United Arab
Emirates. It is the subsidiary company of the mother company, Emirates Group that is owned by
the government of Dubai’s investment. Emirates Airlines Company’s headquarter are situated
in Dubai, Arab Emirates and were founded in 1985, by Maurice Flanagan.

Revenue Analysis:

DUBAI, May 11 (Reuters) - Dubai's Emirates Group on Thursday said financial year 2022-23 had
been its most profitable so far, reporting an annual profit of 10.9 billion dirhams ($3 billion) and
a group revenue increase of 81% to $33 billion.

Total Revenue:

The Emirates Group's annual revenue for fiscal year 2022/2023 was approximately 120 billion
Emirati dirhams.

Revenue Growth: Revenue up 20% to AED 67.3 billion (US$ 18.3 billion)

Net Profit Margin:

DUBAI, U.A.E., 09 November 2023: The Emirates Group today announced its best-ever six-
month financial result. The Group is reporting a 2023-24 half-year net profit of AED 10.1
billion (US$ 2.7 billion), surpassing its record half-year profit of AED 4.2 billion (US$ 1.2 billion)
last year by 138%.

Cost Structure:
The biggest costs for Emirates Airlines include labor and fuel. Labor accounts for about 31% of
operational expenses, followed by fuel: 22% of operational expenses.
 INDIRECT APPROACH

Contrastingly, the indirect approach involves a more nuanced and strategic approach. It may
include collaborating with various stakeholders, leveraging partnerships, or implementing
phased strategies.

In this indirect approach, Management Discussion and Analysis (MD&A) and risk factors,
providing a more interpretative perspective:

Strategic Initiatives:

Emirates' current strategies include improving in-flight services for travelers and lowering its
operational costs to enhance efficiency. On the other hand, one potential strategy is expanding
its network to overseas markets.Its strategy to prioritize customer experience—albeit without
the sofas and the live entertainment—has helped to drive impressive growth.

Market Trends:

Economic Factors Affecting Emirates Airlines

Some key considerations include: Fluctuating fuel prices impact operational costs and
profitability. Exchange rate fluctuations affect the purchasing power of customers and impact
demand. Economic downturns can lead to reduced consumer spending on air travel.

Positioning Strategy

Emirates positioning strategy is primarily benefit oriented and aims at offering unique services.
Emirates positioning is universal, innovative and offers good value for money. Where business
and first class passengers are concerned emirates positioning is one of high quality, luxury and
comfort on board. Risk Factors:

Market Risks:

Market Risks for Emirates Airlines may include fluctuations in fuel prices, changes in demand
for air travel due to economic conditions, and competition from other airlines.
Operational Risks

Operational Risks could involve disruptions due to technical issues, maintenance challenges, or
unexpected events affecting flight schedules.

Regulatory Risks

Regulatory Risks might encompass changes in aviation regulations, government policies, or

geopolitical tensions impacting the airline industry.