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Profitability

Emirates ended the financial year with an operating profit of AED 3,565 million indicating a 56.6% rise from the previous year. Emirates profit attributable to the Owner for 2009-10 had significantly improved to AED 3538 million from AED 686 million in the previous year.
Profit Attributable to the Owner in AED millions
6000 5000 4000 3000 2000 1000 0 2006-07 2007-08 2008-09 2009-10 5000 4500 4000 3500 3000

Operating profit in AED millions

2500
2000 1500 1000 500 0 2006-07 2007-08 2008-09 2009-10

Revenue
Revenue generated by the end of the financial year remained stable at AED 42,477 million in comparison to AED 42,459 million in the previous year reflecting lower passenger and cargo yields offset by increased traffic. Passenger & Cargo revenue accounted for 94.6% of revenue.

Profit Margin
Emirates profit margin recovered from 1.6% in the previous year to 8.1% in 2009-2010
Profitability Margin in %
14

12
10 8 6 4 2 0 2006-07 2007-08 2008-09 2009-2010

Expenditure
Emirates operating costs during the year 2009-2010 was AED 39,890 million, which was 2.7% better than the previous year. The reason being due to a reduced jet fuel bill. Employee Cost Grew by 8.3% which compares with 16.9% growth in capacity. Depreciation charge Higher depreciation charge of 34.6% on account of an increase in airline fleet assets. Jet fuel costs AED 11.908 million comprised 29.9% of operating cost.

Traffic and Capacity


Aircraft departures increased by 12.4%

Eight A380 superjumbo aircraft in the fleet at 31sr March 2010 are very popular with returning load and seat factors well above the network coverage. A380 serves 8 destinations, 5 of which were added in the current financial year.

Cash position
Emirates cash generated from operating activities at AED 8,328 million, highest level ever reached. Operating cash margin at 19.2% in 2009-2010 is 7.6% points better than the year 2008-2009.

Net cash used in investing activities at AED 577 million is mainly of account of the outflows of AED 3,416 on property, plant and equipment.

Net amount of AED 2,982 million used in financing activities on the outflows of settling borrowings and lease liabilities including financing cost as well as dividends to the ownership.

Cash profit from Cash assets were up by AED 3,143 to AED 10,511 operations for the year million at 31 March 2010. 31st March 2010 was AED 10638 million, up 28.4% over last year which was the highest level ever achieved.

Represents a healthy cash asset to revenue ratio of 7.2 percentage points better than the year 2008-2009.

Capital Expenditure
During the year 20082009, Emirates capital expenditure stood at AED 8053 million. Primary capital expenditures comprised 82.9% of the total capital expenditure. Secondary capital expenditure amounted to AED 1378 million.

Fleet acquisition
Emirates took 15 aircrafts. Largest B777 operator, when it took delivery of its 78th B777 aircraft.
11 Boeing 10 B777300ER B777200LR 4 Airbus 4 A380

Financing
Raised a total of AED 8776 million. Eight B777-300ER aircraft funded through finance leases. First ever financing of Boeing aircraft was through capital markets guaranteed by the US Export-Import bank on finance lease. It raised AED 1520 million to finance 3 Boeing 777-300ERs. Out of the 4 Airbus A380, 2 were financed as finance leases and 2 through sale and lease back transaction using the German KG market. Closed 2 sale and leaseback transactions for 8 spare engines and 2 B777-200 classic aircraft.

Debt

Total borrowing & lease liabilities: AED 19,605, up AED 3,093 (18.7%) from the previous year.

Ratio of Borrowings & lease liabilities to total equity - 112.2% (2009/10) compared to 106% (2008/9). Net Debt Equity Ratio improved to 52% when compared with 58.7% of the previous year. After capitalizing aircraft operating leases the same ratio 158.5%(2009/10)

Reason Borrowings offset by cash assets.

Currency & Interest Rate Risk

Borrowings/Lease liabilities(net of cash)

83% fixed interest rate

17% floating interest rates

1% point increase in interest rates would increase the interest charges(net of interest income) by AED 74 million the next financial year. 2009/10 2.5%

Interest rate on borrowings/lease liabilities

2008/09

3.5%

Emirates managed its currency exposure by usage of : Prudent hedging solutions Currency swaps Options & natural hedges Pound sterling Euro Australian Dollar Newzealand Dollar 14% 24% 29% 81% Hedging Coverage as of 31st March 2010.

Japanese Yen

91%

Employee strength and productivity


The Average number of employees in the airline grew by 649 (2.3%) to 28,686 despite the 16.9% growth in capacity. The increase in airline employee numbers were mainly in the cabin crew and flight deck categories on account of 15 new aircraft added during the year.

Employee productivity for the airline measured in terms of revenue per employee remained relatively flat at AED 1.5 million ( 2008-09: AED 1.5 million)

Capacity per airline employee was sharply up by 14.3% or ATKM 994 thousand compared with ATKM 870 thousand in 2008-09. Similarly, load carried per airline employee also increased by 17.5% to RTKM 665 thousand from RTKM 566 thousand in the previous year.

Fleet Information
Emirates airlines has an additional 15 aircrafts bringing the total no. of aircrafts to 142 compared to previous years 127.

Emirates operates one of the youngest fleet in the industry with an average age of 69 months compared with an industry average of 190 months.

Sports Sponsorships

Highlights for the year 2009-2010


Emirates begins A380 operations to Bangkok & Toronto - The aviation worlds first superjumbo commercial services to both cities. Emirates becomes the first airline to order the Honeywell SmartRunway & SmartLanding safety systems which give pilots vocal & visual alerts about the stability of an aircraft on approach & landing. Emirates launches a fuel saving initiative designed to save AED35million (US$9.5million) a year & reduce annual carbon emissions by 43,250tonnes. Mobile Emirates.com goes live allowing customers to access the website through mobile phones or PDA. Emirates presents representatives from 40 travel agencies in Dubai & the Northern Emirates with contracts granting access to travel solutions from EmQuest and Sabre. Emirates launches the Best Price marketing campaign in the UAE.

Emirates wins the best in-flight entertainment at the world airline awards 2009 for the 5th consecutive year.
Emirates simplifies its baggage policy and offers an additional 10kg to customers traveling in all cabins.

Both Emirates and Airbus A380 full flight simulators are certified to Level D-the highest qualification granted by the UK civil Aviation Authority.

The latest Emirates lounge opens in Dusseldorf.


Emirates begins flights to Durban International Airport, becoming the only carrier flying international routes on daily basis out of the South African city. Emirates half year profits of AED 752 million are 165% up on the same period the previous year, and buck the worldwide industry trend.

Emirates teams up with Virgin Blue to launch the Emirates Visit Australia Pass. Emirates became the worlds largest operator of B777s with the delivery of its 78th B777 aircraft.
The latest Emirates lounge opens in Dusseldorf.

The millionth Emirates passenger uses their own mobile phone on an aircraft equipped with the AeroMobile system.