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Emirates Group announces its 27th consecutive year of profit, $1.5 billion net profit, up 34%, will launch weekly cargo service to Columbus, Ohio

The Emirates Group (Emirates Airline and Emirates SkyCargo) (Dubai) has announced its 27th consecutive year of profit. The profit for the fiscal year was $1.5 billion, up 34 percent from the previous year. The airline issued this statement:

The Emirates Group announced its 27th consecutive year of profit and steady growth across the company, ending the year in a strong position despite the many global and operational challenges during this period. The financial year ending March 31, 2015 also marked the achievement of new capacity milestones at both Emirates and dnata, as the Group continued to expand its global footprint, and strengthen its business through strategic investments.

Released in its 2014-15 Annual Report the Emirates Group posted an AED 5.5 billion (US$1.5 billion) profit, up 34% from last year. The Group’s revenue reached AED 96.5 billion (US$26.3 billion), an increase of 10% over last year’s results, and the Group’s cash balance remained strong, growing to AED 20.0 billion (US$5.5 billion).

“2014-15 was a turbulent year for aviation. The fall in oil prices provided cost relief in the second half of our financial year, however it did not offset the hit to our profitability caused by significant currency fluctuations, nor the hit to our revenue from operational adjustments in addressing the Ebola outbreak, armed conflicts in several regions, and the 80-day runway upgrading works at Dubai International airport (DXB). Achieving our 27th consecutive year of profit and one of our best performances to date, is testimony to the strength of our brands and business fundamentals, as well as the dedication and talent of our workforce,” said His Highness (H.H.) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.

The strong rise of the US dollar against currencies in many of Emirates’ and dnata’s key markets had an AED 1.5 billion (US$412 million) impact to the Group’s bottom line, while the 80-day disruption at DXB had an estimated impact of AED 1.7 billion (US$467 million) on Group revenue.

“Every year brings a new set of challenges. In addressing these, we are always guided by the best interest of our people, our customers, and our long-term goals. As a Group, we keep a close eye on our top and bottom lines, but we never take our foot off the gas pedal when it comes to investing to enhance our business performance, and looking after our people. In 2014-15, the Group collectively invested over AED 20.2 billion (US$5.5 billion) in new aircraft and equipment, modern facilities, the latest technologies, and staff initiatives. This was the second highest amount ever in one financial year after last year’s record investment.”

The Group’s employee base across its more than 80 subsidiaries and companies increased by 11% to over 84,000-strong representing over 160 different nationalities.

“Looking ahead, the ongoing uncertainty for many currencies and economic markets around the world will continue to pose a challenge, as will the looming threat of protectionism in some countries. However, we move into the new financial year with confidence, and a strong foundation for continued profitability with our strong balance sheet, solid track record, diverse global portfolio, and international talent pool,” said Sheikh Ahmed. “We will continue on our journey of steady and rational growth, and work even harder to meet and exceed our customers’ expectations.”

In line with the overall profit increase, the Group declared a dividend of AED 2.6 billion (US$ 700 million) to the Investment Corporation of Dubai.

Emirates performance

In 2014-15, Emirates increased capacity by 4.0 billion Available Ton Kilometers (ATKMs). For the first time in the airline’s history, Emirates’ total passenger and cargo capacity crossed the 50 billion mark, to 50.8 billion ATKMs at the end of the financial year, cementing its position as the world’s largest international airline.

Emirates received 24 new aircraft during the year, including 12 A380s, ten Boeing 777-300 ERs and two Boeing 777Fs, bringing its total fleet count to 231. At the same time 10 aircraft were phased out, taking the average fleet age to 75 months or approximately half the industry average of 140 months. The airline remains the world’s largest operator of the Boeing 777 and A380 – both aircraft being amongst the most modern and efficient wide-bodied jets in the sky today.

With the delivery of new aircraft, Emirates launched five new passenger destinations: Abuja, Brussels, Budapest, Chicago, Oslo and four new additional freighter-only destinations: Atlanta, Basel, Mexico City, and Ouagadougou. It also added services and capacity to 34 cities on its existing route network across Africa, Asia, Europe, the Middle East, and North America, offering customers even greater choice and connectivity.

The 80-day runway closure at DXB necessitated the grounding of 19 Emirates aircraft, reducing the airline’s capacity by 9%, and causing the reduction of services to 41 destinations over this period. The estimated impact on airline revenue was AED 1.6 billion (US$ 436 million). The Ebola outbreak in Africa prompted route suspensions and increased health and safety screenings at other ports; and geopolitics resulted in the suspension of services and re-routing of flight paths to avoid overflying conflict zones.

Despite these challenges, Emirates revenue reached a new record of AED 88.8 billion (US$24.2 billion). The average price of jet fuel dropped significantly during the second half of the financial year and has supported Emirates’ bottom line improvement. Emirates’ fuel bill decreased by 7% over last year to AED 28.7 billion (US$7.8 billion). Fuel is now 35% of operating costs, down by 4%pts compared to last year. However, fuel remained the biggest cost component for the airline. Total operating costs increased by 6%, compared to a revenue increase of 7% over the 2013-14 financial year.

The airline successfully managed increased competitive pressure across all markets to record a profit of AED 4.6 billion (US$1.2 billion), an increase of 40% over last year’s results, and a healthy profit margin of 5.1%, the strongest margin since 2010-11.

Carrying a record 49.3 million passengers, up 11% from last year, Emirates managed to achieve a Passenger Seat Factor of 79.6%, an improvement compared with last year’s results (79.4%) in spite of a 9% increase in seat capacity byAvailable Seat Kilometres (ASKMs). This highlights thestrong consumer desire to fly on Emirates’ state-of-the-art aircraft, and via efficient routings through its Dubai hub.

Under pressure from the weakening of all major currencies against the USD, passenger yield dropped to 29.7 fils (8.1 US cents) per Revenue Passenger Kilometre (RPKM).

Emirates also improved its premium seat factor despite lingering economic uncertainty and strong competition in many markets. Premium and overall seat factor for the airline’s flagshipA380aircraft outperformed the network, underscoring the popularity of Emirates’ premium and A380 product amongst passengers. At 31 March 2015, Emirates had 59 A380 aircraft in its fleet, serving one out of every four destinations on its passenger network.

To fund its fleet growth, Emirates raised a total of AED 18.7 billion (US$5.1 billion), using a variety of financing structures. Emirates achieved a major landmark when it closed the first ever Japanese Operating Lease on an A380. It also entered into a Japanese Operating Lease with a Call Option (JOLCO) with respect to one A380-800 aircraft to expand the investor base of the A380 into the Japanese market. During the year, Emirates also successfully closed sale and leaseback transactions for five B777-300ERs and one B777-200ER aircraft.

The financing highlight of the year was the successful issuance of a UK Export Finance (UKEF) guaranteed Sukuk bond of AED 3.4 billion (US$913 million) to fund the acquisition of four A380 aircraft to be delivered in 2015. This deal marked the world’s first Sukuk financing supported by UKEF and the largest ever capital markets offering in the aviation space with an Export Credit Agency guarantee.

These deals align with Emirates’ strategy to seek diverse financing sources, and underscore its sound financials and the strong investor confidence in the airline’s business model. Emirates closed the financial year with a healthy AED 13.3 billion (US$3.6 billion) cash flow from operating activities.

Revenue generated from across Emirates’ six regions continues to be well balanced, with no region contributing more than 30% of overall revenues. Europe is the highest revenue contributing region with AED 25.2 billion (US$6.9 billion), up 7% from 2013-14. East Asia and Australasia follows closely with an increase of 3% and AED 24.6 billion (US$6.7 billion). The highest growth with 20% was recorded for the Americas to AED 11.0 billion (US$3.0 billion). Gulf and Middle East revenue increased 4% to AED 8.6 billion (US$2.3 billion).

Across the rest of the globe Emirates saw strong revenue increases from West Asia and Indian Ocean up 11% to AED 9.2 billion (US$ 2.5 billion) and Africa with AED 8.1 billion (US$2.2 billion) in revenue, up 5%.

In line with its customer-focused proposition, Emirates invested over AED 73 million (US$20 million) last year to equip its fleet with free Wi-Fi. By March 31, 2015, 107 of its Airbus A380 and Boeing 777 aircraft offered Wi-Fi services. The airline also opened new dedicated airport lounges in Glasgow and Los Angeles, taking to 37 the number of dedicated Emirates Lounges across the world. Emirates also opened a new 300-seat contact centre in Budapest to support its growth and supplement its language and response capability.

Looking forward to 2015-16, Emirates has to date announced two new routes including Denpasar and Orlando aside from a number of capacity upgrades to existing destinations.

The 2014-15 financial year has been a strong one for Emirates SkyCargo who reported a revenue of AED 12.3 billion (US$ 3.4 billion), a very remarkable 9% increase over last year. Contributing 15% of the airline’s total transport revenue Emirates SkyCargo continues to play an integral role in the company’s expanding operations.

Emirates SkyCargo’s tonnage strongly increased by 6% to reach 2.4 million tonnes in an airfreight market that remained challenging with fast-changing demand patterns. Emirates SkyCargo’s performance highlights its ability to grow revenues against the industry norm. This year, freight yield per Freight Tonne Kilometre (FTKM) decreased by 1%, and was also impacted by the weakening of major currencies.

On May 1, 2014, Emirates SkyCargo marked a major milestone with the move of its freighter operations to its new cargo terminal at Dubai World Central’s Al Maktoum International airport (DWC). Capable of handling 700,000 tons of cargo annually, the new terminal at DWC is equipped with state-of-the-art technology and has the potential for further expansion to handle 1 million tonnes annually, positioning the business for future growth.

At the end of the financial year, the Emirates SkyCargo freighter fleet had grown to 14 aircraft – 12 Boeing 777Fs, and 2 Boeing 747-400Fs.

Emirates’ hotels recorded revenue of AED 693 million (US$ 189 million), an impressive increase of 23% over last year. This positive development was supported by the opening of the second tower of the JW Marriott Marquis Hotel in Dubai, the world’s tallest hotel.

In other news, Emirates SkyCargo, the freight division of Emirates, has announced that Columbus, the State Capital of Ohio in the United States, will join its global freighter network with the launch of a weekly service to Rickenbacker International Airport from May 27, 2015.

The new freighter service to America’s 15th largest city will become Emirates SkyCargo’s 48th destination in its worldwide freighter network and sixth in the US. The announcement was made on the side lines of the 7th Air Cargo Europe Exhibition and Conference taking place in Munich, Germany, where Emirates SkyCargo is showcasing its products and services.
The flight will be operated by an Emirates SkyCargo Boeing 777 Freighter, which has the capacity to carry just over 100 tonnes of cargo, and with its main deck cargo door being one of the widest of any aircraft, enables it to uplift outsized cargo and carry larger consignments.

Top Copyright Photo: SPA/AirlinersGallery.com. Emirates added an even dozen new Airbus A380s during the year. A380-861 A6-EEX (msn 154) departs from Heathrow Airport in London.

Emirates aircraft slide show:

Bottom Copyright Photo: Ton Jochems/AirlinersGallery.com. Emirates SkyCargo is coming to Columbus, Ohio starting on May 27. Boeing 777-F1H A6-EFL (msn 42230) taxies at Amsterdam.

Hawaiian Airlines celebrates 85 years of flying

Hawaiian Airlines (Honolulu) yesterday (November 11) celebrating its 85th anniversary of continuous service for the Hawaiian islands and 85 years of flying as an airline.

Hawai’i’s first interisland passenger service was launched on November 11, 1929 as Inter-Island Airways (see video above), with a flight from Honolulu to Hilo, which took a total of one hour and 40 minutes. The first flight to Kaua’i was made the following day and all the Hawaiian Islands were soon receiving air service on a regular basis. During this time, the first inflight treat offered to passengers was a stick of Wrigley gum to relieve ear pressure. The 85-year-old airline is reviving that in-flight amenity by handing out Wrigley’s Doublemint® gum, which is also celebrating its 100th anniversary this year, along with a commemorative postcard and historic logo stickers to more than 12,000 passengers on all of its neighbor island flights.

Additionally, Hawaiian Airlines has also published a special commemorative book highlighting 85 years of its history and legacy which will be available for sale online at Shop.HawaiianAirlines.com in late November.

Winners of Hawaiian Airlines’ social media contest series were given free rides throughout the day on the airline’s original airplane, a 1929 Bellanca CH-300 Pacemaker (above), which was restored in 2009 in celebration of the company’s 80th anniversary.

Hawaiian Airlines’ 85th anniversary has been devoted to giving back to the community. In September, the airline unveiled a memorial wall at Kahului Airport honoring Capt. James Bertram Hogg, the pilot whose name was used for the airport’s three-letter code (OGG) (see video below). The event kicked off a three-month-long celebration that continued with an all-day community event in early October at the ‘Imiloa Astronomy Center of Hawaii in Hilo, the airline’s first destination. On November 8, Hawaiian Airlines also showcased all of its flight attendant uniforms dating back to 1943 with a fashion show at Honolulu Fashion Week.

Throughout the month of November, Hawaiian Airlines Team Kōkua will be participating in statewide community service projects on the islands of Hawai’i, Maui, O’ahu and Kaua’i, restoring agricultural and historical sites.

Looking Back at Hawaiian Airlines’ 85-Year History:

On November 11, 1929, Inter-Island Airways (the company changed its name to Hawaiian Airlines in 1941) launched Hawai’i’s first-ever scheduled interisland air passenger service using two Sikorsky S-38 amphibian propeller planes that carried eight passengers and two crewmembers, and had a top cruising speed of 110 MPH.

Along with being Hawai’i’s first commercial airline, Hawaiian Airlines’ 85-year history of service has featured several other notable achievements, including:

Introducing airmail and air cargo service to the Hawaiian Islands in 1934.
Becoming America’s first federally certified air cargo carrier in 1942.
Introducing Hawai’i’s first aircraft with pressurized passenger cabins in 1952.
Introducing Hawai’i’s first interisland jet aircraft in 1966.
Becoming the nation’s first airline to operate a commercial flight with an all-female flight crew in 1979.
Being the first Hawai’i-based airline to offer scheduled service between Hawai’i and the U.S. Mainland in 1985.

Today, Hawaiian Airlines’ route network encompasses six of the eight Hawaiian Islands, as well as 11 International and 11 U.S. Mainland destinations. Hawaiian Airlines operates a fleet of 51 aircraft – 18 Boeing 717-200 jets for interisland flights in Hawai’i; 11 Boeing 767-300 and 19 Airbus 330-200 wide-body jets for transpacific and international service; and three ATR 42 for its new turbo prop service ‘Ohana by Hawaiian that launched earlier this year.

Hawaiian Airlines will have three more A330s joining the fleet by the end of 2015. By the end of year 2020, the airline plans to have 22 A330s total and 16 new narrow body A321neo aircraft. The airline will begin taking delivery of six new A330-800neo aircraft in 2019.

Hawaiian Airlines aircraft slide show:

Video: How OGG became the airport code for Kahului:

Why does Kahului Airport use the airport code of OGG? Hawaiian Airlines answers the question as part of its 85th anniversary celebrations

Hawaiian Airlines (Honolulu) which is currently preparing to celebrate 85 years of flying on November 11, has answered the riddle for travelers to Maui; Why does the Kulului Airport use the three-letter code of OGG? Hawaiian issued this statement about the new wall at OGG:

Travelers to Maui will no longer have to puzzle over why Kahului Airport’s three-letter airport code is OGG. They need only spend a few minutes at a new wall paying tribute to Capt. Jimmy Hogg, the Hawaiian Airlines pilot and aviation pioneer for whom the airport is named.

The 8-foot tall, 42-foot wide wall at Gate 19 was presented on September 15 by Hawaiian Airlines, the State Department of Transportation (DOT) and the Transportation Security Administration (TSA).

“We were approached with the idea of sharing the story of Captain Hogg’s life and career by TSA employees in Kahului, who are asked questions everyday about the origin of OGG,” said Mark Dunkerley, president and CEO of Hawaiian Airlines, Hawai’i’s oldest and largest commercial airline. “Kahului Airport officials offered to provide us with the space and we were delighted to design this fitting tribute to Jimmy, whose epic career ran from the earliest days of commercial aviation in Hawai’i to the dawn of the jet age.”

Born and raised in Līhu’e, Kaua’i on a sugar plantation, Hogg grew up watching airplanes land at Nāwiliwili and decided at the age of 12 that he was destined to become a pilot. He started his aviation career on January 1, 1930 at Inter-island Airways as a mechanic’s helper. He became a co-pilot in 1936, and captain the following year. He went on to achieve a series of “firsts” with the airline, which was renamed Hawaiian Airlines in October 1941. Hogg made the first commercial flight after the attack on Pearl Harbor, coming under ground fire from those mistaking his plane for an enemy aircraft. On January 14, 1958, he flew Hawaiian Airlines’ first trans-Pacific flight, delivering a DC-6 from the West Coast to Honolulu.

When the Civil Aeronautics Authority (CAA) began to standardize airport navigational beacons after World War II, it turned to Hogg for assistance. In 1957, when it was decided that Kahului Airport needed a three-letter code, the CAA took the opportunity to honor one of the pioneers of Hawai’i aviation. Hogg retired from Hawaiian Airlines in 1968 and passed away at the age of 84 in 1992. A video recap of his life is located at the bottom of this story.

Anniversary Activities

The dedication of the Capt. Jimmy Hogg Memorial Wall at Kahului Airport kicks off a series of celebrations leading up to Hawaiian Airlines’ 85th anniversary on November 11, 2014.

On October 4, 2014, Hawaiian Airlines will host an all-day community event at the ‘Imiloa Astronomy Center of Hawaii in Hilo, the airline’s first destination. Residents of Hawai’i Island are invited to enjoy the museum as well as live entertainment and exhibits. Weather permitting, free rides will be offered on the airline’s original aircraft, a 1929 Bellanca CH-300 Pacemaker.

Copyright Photo: Ivan K. Nishimura/Blue Wave Group/AirlinersGallery.com. Bellanca CH-300 Pacemaker NC251M (msn 154) is pictured at Honolulu.

Hawaiian Airlines Aircraft Slide Show:

Trivia contests via Hawaiian Airlines social media channels will offer prizes throughout the months of October and November, including drawings for free sightseeing rides on the historic Bellanca.

On November 11, 2014, Hawaiian Airlines’ Team Kōkua of employees will be participating in simultaneous community service projects on the islands of Kaua’i and Hawai’i.

“Hawaiian Airlines has been flying almost as long as the advent of commercial aviation, which is celebrating its 100th anniversary this year—both of which are remarkable achievements,” said Dunkerley. “We thank our dedicated employees and our loyal customers, whom both are key reasons why Hawaiian Airlines is able to celebrate a successful and rich 85-year history of service to the Hawaiian Islands and the world.”

Celebrating 85 Years of Service

On November 11, 1929, Inter-Island Airways (the company changed its name to Hawaiian Airlines in 1941) launched Hawai’i’s first-ever scheduled interisland air service using two Sikorsky S-38 amphibian propeller planes that carried eight passengers and two crewmembers, and had a top cruising speed of 110 MPH.

The company’s inaugural flight 85 years ago from Honolulu to Hilo, with a stop on Maui, took one hour and 50 minutes. The first flight to Kaua’i was made the following day and all the Hawaiian Islands were soon receiving air service on a regular basis.

Along with being Hawai’i’s first commercial airline, Hawaiian Airlines’ 85-year history of service has featured several other notable achievements, including:

Introducing airmail and air cargo service to the Hawaiian Islands in 1934.

Becoming America’s first federally certified air cargo carrier in 1942.

Introducing Hawai’i’s first aircraft with pressurized passenger cabins in 1952.

Introducing Hawai’i’s first inter-island jet aircraft in 1966.

Becoming the nation’s first airline to operate a commercial flight with an all-female flight crew in 1979.

Being the first Hawai’i-based airline to offer scheduled service between Hawai’i and the U.S. Mainland in 1985.

Today, Hawaiian Airlines has a fleet of 50 aircraft – 18 Boeing 717-200 jets for interisland flights in Hawai’i; 11 Boeing 767-300 and 18 Airbus 330-200 wide-body jets for transpacific and international service; and three ATR-42 for its new turbo prop service that launched earlier this year, ‘Ohana by Hawaiian.

Hawaiian Airlines will have four more A330s joining the fleet by the end of 2015. By the end of year 2020, the airline plans to have 22 A330s total and 16 new narrow body A321neo aircraft, along with six new A330-800neo aircraft starting in 2019.

Video: Do you know why the Kahului Airport code is OGG? The code of this Hawaiian Airlines station is named after Captain Jimmy Hogg, an accomplished pilot who started his career as a mechanic’s helper with Inter-Island Airways of Hawaii then later became the Captain of Flight Operation for Hawaiian Airlines.

Route Map: Hawaiian Airlines today:

Emirates takes delivery of its 50th Airbus A380

Emirates (Dubai) and Airbus (Toulouse and Hamburg) are celebrating the delivery of the 50th A380 for the airline. Airbus A380-861 A6-EEX (msn 154) was handed over on July 9. The airline issued this statement:

A major milestone for the A380 program, Emirates and Airbus celebrated in Hamburg, Germany the delivery of the 50th A380 for the Dubai-based airline. It is the 136th A380 which has been delivered in total.

Sir Tim Clark, President of Emirates Airline said: “Emirates has seen tremendous organic growth in the past 4 years, probably the fastest of any airline in history. We’ve literally added capacity equivalent to what some mid-sized airlines operate, but more significantly, we have maintained high seat loads and profitability. This speaks to the strength of our world-class product, and also our business model which is based on an efficient global hub that connects Dubai to the world, and almost any two cities in the world via Dubai.”

He added: “The A380 has been very successful for us, and this is reflected in the strong customer interest and high seat factors wherever we’ve deployed the aircraft. The A380 has helped us serve customer demand on trunk routes, operate more efficiently at slot-constrained airports, and also introduce new concepts on-board that have redefined the flying experience. Moving forward, we will see quite a ramp up in the delivery program and by late 2017 we will have around 90 A380s in our fleet to support existing and new A380 routes.”

Following delivery of their first A380 in July 2008, Emirates took delivery of their 25th A380 in October 2012. All Emirates’ A380s are powered by Engine Alliance GP7200 engines. The airline has 140 A380 on order.

For the ferry flight from Hamburg to Dubai, the aircraft was loaded with 41 tons of relief goods. This is the biggest amount which has ever been transported on a single flight organized by the Airbus Corporate Foundation. The goods will be deployed in cooperation with ACF (Action Contre la Faim) to a UN Humanitarian Response Depot in Dubai.

The total A380 fleet has accumulated over 1.4 million flight hours in more than 172,000 commercial flights. To date over 60 million passengers have already enjoyed the unique experience of flying on board an A380. Every four minutes, an A380 either takes off or lands at one of the 37 airports where it operates today and the network is constantly growing.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Part of the fleet, Airbus A380-861 A6-EDH (msn 025) arrives in Beijing. Bottom: Emirates.

Emirates:

Hawaiian brings back the original Bellanca

Copyright Photo: Ivan K. Nishimura. Please click on photo for other photos.

Hawaiian Airlines (Honoulu) yesterday (October 8) brought its original Bellanca CH-300 Pacemaker NC251M (msn 154) back to the islands to help celebrate its 80th Anniversary on November 11. NC251M is the last flying CH-300 in the world. The company had the aircraft restored into flying condition and the original 1929 Inter Island Airways markings for the upcoming ceremonies. The Bellanca started sightseeing flights on October 6, 1929 over Oahu to and from Koko Head. Two Sikorsky S-38 amphibians were also acquired in order for the new airline to start scheduled passenger service on November 11, 1929 from Honolulu to Hilo via Maui. On October 1, 1941 the company adopted the current name.

Press release:

finance.yahoo.com/news/Hawaiian-Welcomes-Home-First-prnews-1535559381.html?x=0&.v=1