dnata’s travel services operation has seen its revenue more than double following the acquisition of Gold Medal.
The travel division, which is part of the Emirates Group, saw its revenue come in at AED 873 million (US$238m), up 161% for the first half of 2014 year-on-year.
The acquisition of Gold Medal from Thomas Cook also resulted in a 29% increase in underlying net sales to AED3.8 billion (US$1 billion).
However the dnata arm generally showed a 26% decrease in net profits to AED339m (US$92m) predominantly attributed to its ground operations serving fewer aircraft during work at Dubai International Airport, as well as costs incurred setting up operations at Dubai World Central.
“As the biggest operator at Dubai International, we also took the biggest hit to our bottom line from the 80-day runway upgrading works. However, we had anticipated it and made meticulous plans to minimise impact operationally and commercially for both Emirates and dnata. The success of these plans can be seen in our overall growth during this six-month period in spite of the challenge,” said His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of Emirates Airline and Group.
Overall the Emirates Group saw a 1% increase in net profits to AED2.2 billion (US$607m) with revenue up 12% to AED47.5bn (US$12.9bn).
Emirates Airline carried 8% more passengers to 23.3 million, improving its load factor to 81.5%. The airline also posted an 8% rise in net profit to AED1.9bn (US$514m).
Al Maktoum warned that global crisis such as the Ebola outbreak and currency fluctuation will remain its biggest challenges.
He said: “It is those external threats that we cannot anticipate or directly manage, such as the global economic malaise, the Ebola outbreak, currency fluctuations, and regional conflicts, that could negate our efforts and plans. These issues appear to be piling up, impacting commercial aviation and travel, but show no signs of speedy resolution. Therefore it is critical that we stay agile as we grow. The ability to adapt and act quickly will determine our continued success.”