Emirates Group Earns $631 Million Profit in 2018-19
In its 2018-19 annual report, the Emirates Group posted a profit of AED 2.3 billion ($631 million) for the financial year ended 31 March 2019, down 44% from last year. The Group’s revenue reached AED 109.3 billion ($29.8 billion), an increase of 7% over last year’s results. The Group’s cash balance was AED 22.2 billion ($6.0 billion), down 13% from last year mainly due to large investments into the business, including significant acquisitions and payment of last year’s AED 2 billion ($545 million) dividend.
In line with the overall profit, the Group declared a dividend of AED 500 million ($136 million) to the Investment Corporation of Dubai for 2018-19.
His Highness (H.H.) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: “2018-19 has been tough, and our performance was not as strong as we would have liked. Higher oil prices and the strengthened US dollar eroded our earnings, even as competition intensified in our key markets. The uptick in global airfreight demand from the previous year appears to have gone into reverse gear, and we also saw travel demand weaken, particularly in our region, impacting both dnata and Emirates.
“Every business cycle is different, and we continue to work smart and hard to tackle the challenges and take advantage of opportunities. Our goal has always been to build a profitable, sustainable, and responsible business based in Dubai, and these principles continue to guide our decisions and investments. In 2018-19, Emirates and dnata delivered our 31st consecutive year of profit, recorded growth across the business, and invested in initiatives and infrastructure that will secure our future success.”
In 2018-19, the Group collectively invested AED 14.6 billion ($3.9 billion) in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives, a significant increase over last year’s investment spend of AED 9.0 billion ($2.5 billion).
In February, Emirates announced a commitment for 40 A330-900s and 30 A350-900s worth $21.4 billion at list prices in an agreement signed with Airbus, to be delivered from 2021 and 2024 respectively. The airline will also receive 14 more A380 deliveries from 2019 until the end of 2021, taking its total A380 order book to 123 units.
dnata’s key investments during the year included: the acquisitions of Q Catering and Snap Fresh in Australia, and 121 Inflight Catering in the US; the buy-out of shares to become the owner of Dubai Express, Freightworks LLC; and a 51% majority stakeholder of Bolloré Logistics LLC, UAE; the build of new cargo and pharma handling facilities in Belgium, the US, the UK, the Netherlands, Australia, Singapore and Pakistan; the acquisition of German tour operator Tropo, and a majority stake in BD4travel, a company providing artificial intelligence driven IT solutions in the travel sector.
Across its more than 120 subsidiaries, the Group’s total workforce increased by 2% to 105,286, representing over 160 different nationalities, mainly influenced by dnata’s new acquisitions and its international business expansion.
Sheikh Ahmed said: “In 2018-19, we were steadfast with our cost discipline while expanding our business and growing revenues. By slowing the recruitment of non-operational roles, and implementing new technology systems and new work structures, we’ve improved productivity and retarded manpower cost increases.”
He concluded: “It’s hard to predict the year ahead, but both Emirates and dnata are well positioned to navigate speed bumps, as well as to compete and succeed in the global marketplace. We must continually up our game, that’s why we invest in our people, technology, and infrastructure to help us maintain our competitive edge. As a responsible business, we also invest resources towards supporting communities, conservation and environmental initiatives, as well as incubating talent and innovation that will propel our industry in the future.”
Emirates said it received 13 new aircraft during the financial year, comprising of seven A380s and six Boeing 777-300ERs, including the last 777-300ER on its order book. The next 777 delivery is planned for 2020, when Emirates receives its first 777X aircraft.
During 2018-19, Emirates phased out 11 older aircraft, bringing its total fleet count to 270 at the end of March. This fleet roll-over involving 24 aircraft was again one of the largest managed in a year, keeping Emirates’ average fleet age at a youthful 6.1 years.
It reinforces Emirates’ strategy to operate a young and modern fleet, and live up to its “Fly Better” brand promise as modern aircraft are better for the environment, better for operations, and better for customers.
During the year, Emirates launched three new passenger destinations: London Stansted (UK), Santiago (Chile) and Edinburgh (Scotland), and reinstated services to Sabiha Gokcen (Turkey). It also added flight capacity to 14 existing destinations and upgraded capacity to six cities, offering customers more choice of flight timings and onward connections.
Supplementing its organic network growth, Emirates expanded its global connectivity and customer proposition through new codeshare agreements signed with Jetstar Pacific and China Southern Airlines. It also enhanced its commercial strategic partnership with South African Airways.
The Emirates-flydubai partnership continued to develop, with Emirates customers now able to access 67 more destinations served by flydubai, and enjoy greater connectivity with 11 flydubai flights operating from Emirates Terminal 3. The partnership alignment also saw Emirates Skywards become the loyalty programme for both Emirates and flydubai.
Despite stiff competition across its key markets, Emirates increased its revenue by 6% to AED 97.9 billion ($26.7 billion). The relative strengthening of the US dollar against currencies in many of Emirates’ key markets had an AED 572 million ($156 million) negative impact to the airline’s bottom line, a stark contrast to the previous year’s positive currency impact of AED 661 million ($180 million).
Total operating costs increased by 8% over the 2017-18 financial year. The average price of jet fuel climbed by a further 22% during the financial year after last year’s 15% increase. Including a 3% higher uplift in line with capacity increase, the airline’s fuel bill increased substantially by 25% over last year to AED 30.8 billion ($8.4 billion). This is the biggest-ever fuel bill for the airline, accounting for 32% of operating costs, compared to 28% in 2017-18. Fuel remained the biggest cost component for the airline.
Against a backdrop of high fuel prices, strong competitive pressure, and unfavourable currency impact, the airline reported a profit of AED 871 million ($237 million), a decline of 69% over last year’s results, and a profit margin of 0.9%.
Overall passenger traffic remained steady, as Emirates carried 58.6 million passengers (up 0.2%). With seat capacity increasing by 4%, the airline achieved a Passenger Seat Factor of 76.8%. The slight decline in passenger seat factor compared to last year’s 77.5%, reflects the impact of slowing regional economies on travel demand, and strong competition in many markets.
An increase in market fares and a favourable class mix helped support a passenger yield increase of more than 3% to 26.2 fils (7.1 US cents) per Revenue Passenger Kilometre (RPKM), although the full impact was partly offset by the strengthening of the US dollar against most currencies.
During the year, Emirates raised AED 14.2 billion ($3.9 billion) to fund its fleet growth, using a combination of term loans, finance and operating leases.
Testament to the increasing depth of the Japanese structured financing market for Emirates, all six 777-300ER aircraft delivered were financed via a Japanese Operating Lease with a Call Option (JOLCO) raising funding of more than $1 billion. Emirates has now raised over AED 28 billion ($7.6 billion) from the Japanese structured financing market since 2014.
A $600 million corporate Sukuk issued in March 2018 financed 2 A380 deliveries; and the remaining 5 A380 aircraft were taken on a mix of operating lease, Export Credit Agency (ECA) backed finance leases, and finance leases arranged from institutional investors and bank base from Korea, Germany, UK and Middle East.
Tesla to Refund Many Cybertruck Deposits as Demand Exceeds Production, Musk Sayshttps://english.aawsat.com/business/5339211-tesla-refund-many-cybertruck-deposits-demand-exceeds-production-musk-says
Tesla Cybertruck electric vehicles sit parked in a storage lot in San Diego, California on April 11, 2025. (AFP)
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Tesla to Refund Many Cybertruck Deposits as Demand Exceeds Production, Musk Says
Tesla Cybertruck electric vehicles sit parked in a storage lot in San Diego, California on April 11, 2025. (AFP)
Tesla will have to refund Cybertruck deposits for many customers as orders far exceed production capacity, CEO Elon Musk said, following last week's announcement that the electric vehicle maker is winding down the pickup truck's production at its Texas factory.
"We will try to make as many as possible before shutting down the line in about 8 months, but will have to return deposits for a lot of people," the billionaire said in a post on X on Monday.
The comments come after Musk said Tesla would add an extra production shift to fulfill outstanding Cybertruck orders before dismantling the production line next year to expand output of its Cybercab robotaxi.
The production winddown is slated for mid-2027, Musk announced on Friday, with the resources being redirected to the Cybercab, a vehicle central to the automaker's autonomous-driving ambitions.
Tesla began delivering the Cybertruck in late 2023, but demand has fallen far short of Musk's expectations. US sales fell 48% to 20,237 units last year, according to Kelley Blue Book, well below Musk's earlier projection that annual Cybertruck sales could reach 250,000 vehicles.
China Extends Suspension of New Rare Earth Controls Until Januaryhttps://english.aawsat.com/business/5339200-china-extends-suspension-new-rare-earth-controls-until-january
A mining machine is seen at the Bayan Obo mine containing rare earth minerals, in Inner Mongolia, China July 16, 2011. (Reuters)
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China Extends Suspension of New Rare Earth Controls Until January
A mining machine is seen at the Bayan Obo mine containing rare earth minerals, in Inner Mongolia, China July 16, 2011. (Reuters)
China on Monday announced a two-month extension of export-control waivers due to expire this month, preserving part of a wide-ranging deal struck after a summit between Presidents Xi Jinping and Donald Trump.
China introduced export controls on certain rare earths in April 2025, only to expand them further in October of that year, dramatically widening their scope and also adding new controls on certain diamonds with industrial applications and lithium battery technology.
The measures were then paused for one year last November after a summit in South Korea between Xi and Trump.
The Ministry of Commerce said in a short statement on Monday that the pause would be extended for two months until January 10. It gave no other details.
The extension is part of a broader suspension of trade countermeasures and tariffs announced by China on Monday as it negotiates with Washington over an enduring trade deal.
Trump is set to travel to Shenzhen in southern China later this month for an APEC leaders summit, where he is expected to meet with Xi.
UN to Asharq Al-Awsat ahead of COP31: Climate Change and Energy Security Are Two Integrated Pathshttps://english.aawsat.com/business/5339197-un-asharq-al-awsat-ahead-cop31-climate-change-and-energy-security-are-two
UN to Asharq Al-Awsat ahead of COP31: Climate Change and Energy Security Are Two Integrated Paths
United Nations Climate Change Executive Secretary Simon Stiell. (UN)
On the eve of the opening of the 31st United Nations Climate Change Conference (COP31) on Monday in the Turkish city of Antalya, attention is focused on the ability of governments to bridge the pledge gap and transition toward executing concrete steps to confront climate change. This comes at a time when the challenges of reducing emissions intersect with energy market disruptions, rising electricity demand, and the accelerating expansion of artificial intelligence and data centers.
In an exclusive interview with Asharq Al-Awsat, UN Climate Change Executive Secretary Simon Stiell urged the swift fulfillment of international climate pledges, particularly financing for developing countries and the realization of the $1.3 trillion annual Baku-to-Belem roadmap.
Stiell noted that energy security and climate action are complementary rather than conflicting, while commending the Saudi Green and Middle East Green initiatives for advancing regional cooperation.
The COP31 conference is being held over a period of more than two weeks in Antalya, amid record-breaking temperatures, worsening climate change impacts, and rising energy insecurity, according to the United Nations website. The UN stated that the summit presents a critical opportunity for countries to accelerate the pace of climate action and strengthen cooperation. The host country places electricity at the forefront of its priorities, promoting its own boom in the renewable energy sector alongside its "Zero Waste" program as a means to curb methane emissions.
Stiell addressed the relationship between energy security and climate action amid ongoing disruptions in energy markets, the implications of expanding artificial intelligence and data centers on electricity and water consumption, and the opportunities to utilize these technologies to improve the efficiency of energy systems. He also reviewed the gap between climate pledges and actual implementation, alongside the priorities for the 31st session of the Conference of the Parties in Türkiye.
Officials at COP30 in Brazil. (UN)
High capital costs impede climate financing for developing nations
Stiell described climate finance as a fundamental element to expand the scope and accelerate the pace of climate action, both by reducing greenhouse gas emissions and strengthening the resilience of countries and communities to the worsening impacts of climate change.
Fulfilling all climate finance pledges is "absolutely crucial," particularly to support developing countries that are most vulnerable to the impacts of climate change, despite having contributed the least to causing the crisis, he told Asharq Al-Awsat.
He explained that the challenges facing these countries pertain to the accessibility, nature, and quality of financing, noting that the high cost of capital stands at the forefront of these hurdles, particularly for low-income and highly indebted countries already grappling with compounding debt crises.
While a shortage of projects is not the primary obstacle for some developing countries, others face a challenge rooted in their limited capacity to prepare and develop initiatives, resulting in a scarcity of bankable projects capable of attracting funding and investment, Stiell explained.
Stiell stressed that climate finance is not an act of charity or mere aid, but rather a necessity for achieving climate justice, and at the same time a strategic investment to ensure the resilience of global economies and societies, thereby supporting economic stability and growth with low inflation rates.
He called for strengthening joint action and cooperation among all climate-finance stakeholders and policymakers, including governments holding shares in multilateral development banks, which can leverage their influence to ensure more concessional financing reaches countries most vulnerable to climate risks.
International cooperation can play a pivotal role in deploying public finance to mitigate risks, support project development, and catalyze larger flows of private capital, he stressed.
In this context, he stated that it is essential for the Baku-to-Belem roadmap, which aims to mobilize $1.3 trillion annually in climate finance, to become a tangible reality, building on the agreement reached during COP29 in Azerbaijan regarding the New Collective Quantified Goal on climate finance, and in coordination with the COP30 presidency in Brazil.
The roadmap charts a path to scale up climate finance to $1.3 trillion per year for developing nations, while ensuring it is directed toward the countries and communities that need it most, Stiell said.
The priority today is to transition from the stage of pledges to providing actual and accessible financing, and to translate it into practical investments and projects that support the implementation of climate commitments in developing countries, he stated.
UN Climate Change Executive Secretary Simon Stiell. (UN)
Energy security and climate action: Two complementary paths
Amid geopolitical tensions and recurring disruptions in energy markets, Stiell said that energy security and climate action should be treated as complementary paths that must be addressed together.
He explained that governments must ensure reliable and affordable energy supplies, while reducing emissions and preparing for long-term shifts in energy demand patterns.
Recent disruptions in energy markets underscore the critical need to build resilient infrastructure, diversify energy sources and supply routes, and strengthen international cooperation, continued Stiell.
He added that expanding investments in renewable energy, improving energy efficiency, and developing electricity grids and energy storage systems can contribute to strengthening energy systems that are reliable and capable of meeting demand.
He said that the solution lies in integrating the immediate needs of energy security with long-term strategic planning, explaining that reliable clean energy supplies, emissions reductions, economic development, and international cooperation should reinforce one another rather than be viewed as competing objectives.
Stiell noted that investment in green energy is experiencing an accelerating global boom, with its value surpassing two trillion US dollars over the past year and continuing to rise. Green energy has become a primary driver of economic growth, enhanced competitiveness, job creation, improved living standards, and the achievement of stability.
This is one of the primary reasons driving nearly all G20 economies, including Saudi Arabia, to expand their investments in renewable energy to capitalize on these significant economic and social gains, he said.
Artificial intelligence: A double-edged sword
Regarding the rapid surge in electricity demand resulting from the expanding use of artificial intelligence and data centers, Stiell described AI as a "double-edged sword." He explained that data centers consume massive amounts of electricity and water, making it essential to ensure they rely on clean energy sources and are managed according to sustainability standards.
At the same time, AI possesses enormous potential that can be deployed positively to accelerate the pace of transition, contributing to making energy systems more efficient, flexible, and reliable, while also reducing their costs, he remarked.
He added that the challenge lies in mitigating the negative impacts and risks associated with artificial intelligence, enhancing its positive potential, and ensuring its responsible deployment.
He underlined the importance of ensuring all countries benefit from this potential through capacity building, particularly in the most vulnerable developing nations, and fostering the exchange of knowledge and expertise to help accelerate the implementation of these technologies.
Stiell noted that governments and industrial sectors could achieve substantial gains through joint action, with governments establishing clear policies, regulatory frameworks, appropriate safeguards, and long-term investment plans, while technology companies work to improve the efficiency of data centers and increase their reliance on clean energy sources.
Planning and investment strategies must account for uncertainty, given the varying estimates regarding the scale of future electricity demand driven by the expanding use of artificial intelligence, he went on to say.
Investing in electricity grids, energy storage systems, and the development of more efficient electrical architectures will yield sustainable, long-term benefits, regardless of future demand levels, he added.
A "#COP31" sign is displayed by a road near the entrance of the Antalya Expo Center, venue of the 2026 United Nations Climate Change Conference (COP31), in Antalya on November 7, 2026. (AFP)
Global climate progress remains below required level
In his assessment of global progress toward the Paris Agreement, Stiell stated that humanity has made significant strides against climate change, though current efforts remain insufficient. He noted that without structured United Nations climate cooperation and national initiatives, global temperatures would be on track to rise by more than 4 degrees Celsius, or potentially higher under worst-case scenarios.
He added that current projections indicate global warming could reach around 2.6 degrees Celsius. While this level remains catastrophically high and threatens devastating consequences for economies and populations worldwide, it also reflects the scale of progress humanity has managed to achieve.
The goals of the Paris Agreement remain a fundamental necessity, but achieving them requires accelerating and expanding the scope of climate action through a just global transition that ensures no country or community is left behind, stressed Stiell.
He noted that the world has witnessed progress in technological development, increased investment in clean energy, and the strengthening of national climate plans, but the real challenge lies in accelerating the pace of implementation and turning goals and pledges into tangible results on the ground.
No single session of the UN Climate Change Conference can resolve the global climate crisis on its own, yet recent COP sessions have taken significant steps forward, and the 31st session in Türkiye must continue this path and build upon what has been achieved, he urged.
COP31 focuses on implementation and accelerating electrification
Regarding the priorities of the 31st session of the Conference of the Parties in Türkiye, Stiell explained that the focus will center heavily on boosting and accelerating implementation, both within the framework of formal negotiations and through the action agenda, noting that numerous vital issues require agreements.
He said that climate action must deliver practical benefits to a larger number of people, economies, and ecosystems.
He explained that the formal negotiations within the framework of the UN Framework Convention on Climate Change and the Paris Agreement provide a platform for all countries to present solutions and advance several key files, including a just transition, climate finance, adaptation, mitigation, and climate change response measures.
As for the work agenda, which enables countries to cooperate with businesses, cities, regions, and stakeholders across various sectors, the COP31 presidency has announced its priorities to drive progress in specific, practical areas, such as accelerating the transition to electricity use and modernizing power grids.
Stiell noted that climate change adaptation and building resilience must receive greater attention, explaining that communities need better protection against extreme heatwaves, floods, droughts, and other climate impacts.
Climate action must translate into practical, tangible benefits that reach a larger number of people, economies, and ecosystems around the world, he urged.
Afforestation efforts in the Saudi Arabia. (Saudi Green Initiative)
Clean energy revolution opens opportunities to build stronger economies
In his message prior to the meeting in Turkey, Stiell said the clean energy revolution offers extraordinary opportunities to build stronger economies, enhance energy security, and improve living standards. The conference provides a vital chance to forge new partnerships, reinforce shared priorities, and advance the Sustainable Development Goals.
He called on nations, business leaders, and investors to arrive in Türkiye with a solution-oriented vision, a genuine readiness to work together, and a commitment to reaching the necessary negotiating compromises to secure agreements and drive progress on practical issues, such as the transition to electrification.
These steps are capable of making a real difference and achieving tangible benefits for more people across the world, he stressed.
Climate action: A pillar of Saudi economic transformation
Regarding Saudi Arabia, Stiell praised the steps taken by the Kingdom to integrate climate action into its economic transformation path under Vision 2030.
He pointed to the progress it is making in reducing methane emissions resulting from oil and gas production operations, explaining that this field represents an important opportunity for the Kingdom to strengthen its leadership role at the international level and inspire other countries to take similar steps.
He underlined the importance of continuously integrating renewable energy projects into electricity grids and upgrading the infrastructure of the power sector.
He said that accelerating the pace of climate action in the Kingdom, in these areas and others, would deliver greater benefits to the Saudi economy and its population, as well as to the entire region.
Regarding the upcoming phase, Stiell noted that the priority in the next stage lies in translating national projects and goals into actual, measurable results, by integrating more renewable energy projects into electricity grids, upgrading the infrastructure of the power sector, improving energy efficiency, and continuing to reduce methane emissions.
Achieving this progress remains conditional on the level of commitment to implementation, enhancing transparency in reporting results, and ensuring the sustainability of investments, he added.
Saudi initiatives to boost regional action
Highlighting the Saudi Green and Middle East Green initiatives, Stiell said they are a significant step toward strengthening climate action by combining efforts to reduce emissions, restore land, and protect the environment.
Regional cooperation offers countries the opportunity to exchange expertise and knowledge, build technical capacities, and coordinate investments, he remarked, noting that forging effective regional partnerships can contribute to achieving broader climate and environmental goals while considering the specific ecological characteristics and conditions of the Middle East.
However, he pointed out that the true value of these initiatives depends on the continuity of their implementation and the tangible, long-term results they achieve.
In this context, he stressed that evaluating the success of afforestation projects should not be limited to the number of trees planted, but must also encompass their survival and growth rates, the total area of land successfully restored and rehabilitated, the extent of biodiversity protection, and the efficiency and sustainability of water resource management.
Afforestation efforts in the Saudi Arabia. (Saudi Green Initiative)
Coordination between climate, land, and biodiversity is a necessity
On the importance of coordinating climate, land, and biodiversity agendas and the role the Kingdom can play in this domain, Stiell said Saudi Arabia could play a significant role by leveraging its expertise in combating desertification and land restoration to support regional cooperation.
He explained that the Saudi Green and Middle East Green initiatives provide two important platforms for exchanging knowledge and expertise, strengthening cooperation, and executing environmental projects with a tangible impact.
The primary objective is to transition from treating environmental initiatives as separate tracks to adopting an integrated approach for joint action, achieving tangible results in terms of protecting climate, land, and biodiversity, as well as improving the lives of communities, he said.
Coordinating efforts to confront climate change, restore land, and protect biodiversity is a fundamental necessity, given the close interconnectedness between these issues and challenges, he said.
Climate change exacerbates pressure on ecosystems, while land degradation diminishes the capacity of these systems to store carbon and sustain the livelihoods of communities, he warned.
Message to Saudi Arabia
In a message to Saudi Arabia, Stiell expressed his appreciation for the Kingdom's continuous efforts to confront climate change at a time when climate impacts are intensifying and affecting all countries worldwide, as well as for the significant progress it is making in advancing the energy sector's transition in a just and orderly manner.
He welcomed the Kingdom's continued partnership and active engagement in international climate action efforts, looking forward to further cooperation with it to translate climate commitments into tangible and measurable results that will help in building a more resilient, prosperous, and just world, and a safer and more sustainable future.
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