The Emirates Group reported a record six-month net profit of AED 10.1 billion (US$ 2.7 billion) on November 9, 2023, marking a surge of 138% from the same period last year. This announcement comes as the company, recognized as the world's premier long-haul carrier, unveiled a significant financial upturn for the first half of its fiscal year (April-September). The airline's profit skyrocketed by 135% from the previous year to $2.6 billion (Dh9.4 billion), and its revenue marked a growth of 19%, reaching Dh59.5 billion.
The significant growth was also reflected in their EBITDA and revenue, which reached AED 20.6 billion (US$ 5.6 billion) and AED 67.3 billion (US$ 18.3 billion), respectively, driven by strong global demand for air transport in the wake of easing pandemic travel restrictions. There was a substantial rise in passenger numbers, with a significant annual increase of 31%, resulting in a total of 26.1 million passengers for the period.
Despite a rise in operating costs by 9%, with fuel being the largest cost at 34%, Emirates' revenue was up by 19% at AED 59.5 billion. The airline also saw an increase in Emirates Skycargo tonnage by 11% to 1,035,000 tonnes despite a softening global cargo market.
The Group held a robust cash position of AED 42.7 billion (US$ 11.6 billion) as of September 30, 2023, which was utilized to repay AED 9.2 billion of COVID-19 related loans and pay out a dividend of AED 4.5 billion to its owner.
Chairman HH Sheikh Ahmed bin Saeed Al Maktoum attributed the unprecedented performance to their team's talent, robust business model, service enhancements, Dubai's supportive aviation policies, and the ramp-up of operations. He noted a 6% increase in their employee base to 108,996 on September 30, 2023, and mentioned ongoing recruitment drives to combat the shortage of skilled workforce. The success was also attributed to strategic plans rolled out following the pandemic. However, he expressed optimism for H2 but cautioned about potential headwinds such as rising fuel prices, a strengthening US dollar, inflationary costs, and geopolitics.
Emirates airline restored A380 operations to several destinations and launched daily non-stop services to Montreal, Canada while enhancing connectivity through codeshare or interline agreements with eight airlines. The airline carried 26.1 million passengers between April 1 and September 30, 2023. Its Qantas codeshare partnership received approvals for a further five-year extension until 2027.
The airline's profit for the first half of 2023-24 hit a new record of AED 9.4 billion (US$ 2.6 billion), compared to last year's profit of AED 4.0 billion (US$ 1.1 billion). The airline also introduced several initiatives such as a global brand advertising campaign featuring Hollywood actor Penelope Cruz, a new meal pre-ordering capability for customers, free onboard wi-fi for Emirates Skywards members, and a city check-in facility at Dubai International Financial Centre.
Meanwhile, dnata, part of the Emirates Group, ramped up operations across its cargo and ground handling, catering and retail, and travel services businesses due to new contracts and an expanded customer base across its international operations. Its revenue of AED 9.3 billion (US$ 2.5 billion) marked a 27% increase compared to the same period last year. Dnata's profit rose significantly to AED 709 million from last year's AED 236 million. Dnata's airport operations remained a significant contributor to revenue with AED 4.1 billion in income. The company also made strategic investments, such as acquiring an additional 29% stake in Imagine Cruising and implementing AI-powered solutions in Singapore.
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