Financial and Operational Performance Analysis of Emirates Airline

Managing operation and finance
3/10/2019

Managing operation and finance 1
Contents
Introduction......................................................................................................................................2
Overview of the company................................................................................................................3
Industry........................................................................................................................................3
Competitors of the company........................................................................................................3
Competitive advantage................................................................................................................4
Operational activities of Emirates...............................................................................................4
Financial performance (Ratio analysis)...........................................................................................5
Liquidity ratio..............................................................................................................................5
Profitability ratio..........................................................................................................................7
Gearing ratio................................................................................................................................8
Efficiency ratio............................................................................................................................9
Comparative Analysis between Emirates, Qatar, and Lufthansa Airlines.....................................10
Recommendations..........................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
Appendix........................................................................................................................................17

Managing operation and finance 2
Introduction
In the present competitive world, it is essential for every company to perform business
operations effective as this helps them in dealing with the competitors. The aim of the report is to
evaluate the financial as well as the operational performance of the corporation. The business
that has been designated for the analysis is Emirates airline, a well-known airline that is based in
Dubai, UAE. The report includes the analysis related to the operations of the company that
include the features that make the company different from its competitors. The financial
performance of the company is appraised with the help of ratio analysis. The analysis helps in
analysing the liquidity, profitability, and solvency of the company. In addition to this, the report
includes the evaluation of its performance against the key competitors has been undertaken.

Managing operation and finance 3
Overview of the company
Emirates airline is well-known company who is performing its airline operations in Dubai,
United Arab Emirates. The company started in the year 1985 when the company introduced
operations with the two aircraft. Currently, the company is flying with the world’s major fleets of
the Airbus A380 and with the Boeing 777s (Emirates Group, 2019). This helps the company to
offer comfort to customers of the newest and greatest well-organized wide-body aeroplane in the
skies. Emirates motivate their tourists across the world with the rising linkage in worldwide
destination industry primary onboard entertainment that is locally encouraged cuisine as well as
the excellent service. The company is the global airline who is serving its services in 155 airports
with 83 countries from its hub that is in Dubai.
Industry
Emirates airline deals business operations in UAE aviation sector and with the steady growth that
benefit from the wide range of expertise and to achieve in offering advanced international airport
solution that has boosted the UAE’s national carriers. The fleet of the national air carriers
includes Emirates, Etihad Airways, Air Arabia, as well as the fly Dubai (WAM, 2018).
Competitors of the company
In the present airline industry, the Emirates airline finds different competitors in the market that
include Etihad Airways, Qatar Airways, fly Dubai and many others. The competitors of the
company within the airline industry have been able to reduce their airfares due to which it is able
to give the tough competition to the Emirates. Standards of the service provision between
competitors have improved because of the increase in the companies across the industry of flight.