Emirates Group reported a record net profit of Dh5.9 billion ($1.6 billion) for 2010-11, despite a challenging business climate.

The 2010-11 annual report of the Emirates Group - comprising Emirates Airline, dnata, and their subsidiary companies – was released in Dubai at a news conference hosted by Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.

“This year’s record results represent our drive to push the boundaries of aviation, questioning the norms and advocating for open and fair competition. Despite unforeseen challenges in the form of political instability and shocking natural disasters we have managed, through sheer determination, nimbleness and quick thinking, to produce our best ever result,” said Sheikh Ahmed.

In the face of many challenges, both political and environmental, the group’s revenue increased by 26.4% reaching a remarkable new level at Dh57.4 billion ($15.6 billion). Strong revenue has been the main driver for the group’s record financial performance. The group’s cash balance rose substantially to hit a record high at Dh16 billion ($4.4 billion).

The group’s exceptional performance this year owes much to its dexterity and ability to adapt to changing market conditions quickly, Sheikh Ahmed said. In the first six months Emirates was able to capitalize on strong market demand thanks to its superior network and world-class product, he said.

During the year, dnata forged forward with its international expansion through its proven strategy of acquisition, taking ownership of Alpha Flight Group, a leading caterer with operations in 61 airports globally. Dnata has now become the world’s 4th largest air services provider.

“Emirates continues to dismiss the perceived limitations of the aviation industry, advocating for an open skies environment that stimulates competition, an undeniable positive for the customer. The customer is at the heart of our operations, evident in the 31.4 million passengers that flew with us throughout the financial year, an increase of 14.5% or 4 million passengers on last year,” he said.

During the year, Emirates significantly increased its order for new aircraft, adding 32 additional Airbus A380s and 30 Boeing 777-300ERs. The combined value of these orders is $13.4 billion and brings the airline’s total number of aircraft on order at the end of the financial year to 193, worth over $66 billion, said Sheikh Ahmed.

Emirates took delivery of eight new aircraft during the year including one Boeing 777-300ER and seven of the airline’s flagship A380s expanding the airline’s fleet size to 148 aircraft. Emirates remains the world’s largest A380 and Boeing 777 operator with 15 A380s and 86 Boeing 777s.