The group recorded a $670 million profit for the year to the end of March 2017, with the airline making a $340 million contribution and the tour and airport operator and ground handler dnata making its highest ever profit of $330 million.

The Emirates airline reported “significant currency devaluations” against the US dollar and lower fares “due to a highly competitive business environment”. The group added: “The relentless rise of the US dollar against currencies in most of Emirates’ key markets had a $572 million impact on airline revenue, and to the airline’s bottom line.” The ban on cabin electronic devices on flights to the US also had an effect, it said.

All these factors pushed airline profits down 82% year on year, bringing a profit margin of just 1.5%.

During the year, Emirates airline increased seat capacity by 10%, with 35 new aircraft delivered, bringing total fleet to 259. Six new destinations; Fort Lauderdale, Hanoi, Newark, Yangon, Yinchuan and Zhengzhou, were added. The airline carried a record 56.1 million passengers, up 8%, but average load factors fell from 76.5% to 75.1% due to expansion.

Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group, said the Brexit vote, Europe’s immigration challenges, terror attacks and new policies impacting US air travel had had an impact. Currency devaluation and funds repatriation issues in parts of Africa, plus a sluggish oil and gas industry had hit demand, he said, but added: “Emirates and dnata have continued to deliver profits and grow the business, despite 2016-17 having been one of our most challenging years to date.”

The group revealed that dnata, which owns Gold Medal, Travel 2 and Global Travel Group, now derives two-thirds of revenue from international business. This rose 15% to $3.3 billion, mainly via organic growth but also the acquisitions of dnata Aviation Services in the US and Air Dispatch in the Czech Republic.

However, total revenue from travel services fell 5% to $854 million. Dnata added: “These trends are the reflection of lower travel demand mainly from corporates and government entities in the Gulf region as well as the decline in value of the British pound against the US dollar after the Brexit decision.”