DUBAI, April 30: With almost all airlines showing decline because of Iraq war and SARS posing a threat to aviation industry, the Emirates Group surprised competitors as it has announced another record-breaking year with 74 per cent increase in profits for 2002/03 ending on March 31.

Presenting the annual report and accounts of the Group, comprising Emirates Airline and Dnata (Dubai National Air Travel Agency) here on Wednesday, Emirates Group Chairman Sheikh Ahmed bin Saeed Al-Maktoum put the profits figures at $285.7 million.

Emirates Airline’s operations alone achieved a 94 per cent increase in profits, from $127.6 million to $247 million. The average passenger seat factor rose to 76.6pc, breaking all records, cargo represented 19.6pc of the airline’s revenue.

In reply to a question when Emirates was going to restart flights for Baghdad, Sheikh Ahmed said plans were already under way and flights could be resumed as early as by June.

Total Group revenue increased by 31pc to $2.8 billion compared with 2.1bn in the previous year. Dnata earned a net income of $38.6 million up from $36.7 million for the last year. The cash balance for the Group stood at $1.3bn at the year-end, compared to $0.9bn at the end of previous year.

Despite impressive figures, Emirates may, however, have to count a significant drop in revenue coming from its Asian routes this year, thanks to the outbreak of Severe Acute Respiratory Syndrome in the Far East, which has adversely affected the travel industry.

Group managing director Maurice Flanagan said since these routes are significant revenue contributors to the Airline, naturally it would feel the pinch from the SARS panic.

This year the Dubai-based airline will add a record 11 new aircraft to its fleet and increase seating capacity by 25 per cent, allowing it to start four new routes, add more flights on many current routes and launch new in-flight services, shows an expansion plan of Emirates.