The acquisition of Gold Medal by Emirates Group-owned dnata Travel Services helped boost the division’s sales in the first half of the year.
The expansion of the travel division’s international offering with the Gold Medal deal contributed to a “substantial increase” in the unit’s underlying net sales of 29% to $1 billion.
Revenue from dnata’s Travel Services operation contributed $238 million, up 161% from the same period last year. Dnata has since acquired Travel 2 parent Stella Travel Services.
Dnata’s revenue including other operating income for the six months was up from $1 billion to $1.2 billion, but overall profit dropped by 26% to $92 million due to a number of factors including the impact of 80 days of runway improvement work at Dubai international airport which saw dnata handling fewer aircraft.
Emirates Group revenues reached $12.9 billion for the first six months of its 2014-15 financial year, up 12%, with net profit rising by 1% to $607 million.
Net profit at Emirates airline was up 8% year-on-year to $514 million despite having to temporarily ground part of its fleet due to the runway closure.
The Dubai-based airline and travel group said the results showed a “steady performance and growth, despite a challenging business environment marked by ongoing health pandemic concerns, regional conflicts, and weakening global markets”.
Chairman and chief executive, Sheikh Ahmed bin Saeed Al Maktoum, 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.
“Moving forward, we will keep a watchful eye on these challenges, but continue to focus on our long-term goals and invest in the infrastructure of both Emirates and dnata.”