Dubai's dnata posts record annual profit of $359m

Dubai's dnata posts record annual profit of $359m
Published: 11 May 2018 - 5 a.m.

Dubai-based air services provider dnata announced its highest profit ever at AED1.3 billion ($359 million) for the 2017 financial year

dnata, part of the Emirates Group, said record revenue of AED13.1 billion, up 7 percent, reflects further business expansion, with international business now accounting for 68 percent of revenue.

During the year, the company expanded its global footprint with ground handling acquisitions in the Americas, while also adding new facilities and service capabilities across its airport operations, catering, and travel services divisions.

In its 59 years of operation, 2017-18 has been dnata’s most profitable year with organic growth, key contract wins and solid customer retention across its four business divisions, dnata said in a statement.

dnata also said it continued to lay the foundations for future growth by investing AED600 million in new facilities and equipment, acquisitions, leading-edge technologies and people development.

In 2017-18, dnata’s operating costs increased accordingly by 8 percent to AED11.9 billion while its cash balance reached AED4.9 billion, also a new record high.

Revenue from dnata’s UAE airport operations, including ground and cargo handling, increased by 4 percent to reach AED3.2 billion while the number of aircraft movements handled by dnata in the UAE declined by 2 percent to 211,000 impacted by the geopolitical situation in the region, whereas cargo handling increased by 2 percent to 731,000 tonnes.

Its international airport operations division grew revenue by 14 percent to AED3.8 billion due to increasing business volumes, along with the opening of new locations and winning new contracts.

Revenue from dnata’s travel services division has seen a turnaround after last year’s decline with an increase of 8 percent to AED3.4 billion, the statement added.

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