The Emirates Group has posted its best-ever six-month financial performance, setting a new record result.
The 2023-24 half-year net profit of AED 10.1 billion (US$ 2.7 billion) not only surpassed the previous year’s record but did so with an astonishing 138% increase.
Unveiling the Numbers
The financial success story doesn’t end there. The Group reported a substantial improvement in EBITDA, reaching AED 20.6 billion (US$ 5.6 billion), showcasing a robust operating profitability compared to AED 15.3 billion (US$ 4.2 billion) in the same period last year.
The impressive figures continue with group revenue soaring to AED 67.3 billion (US$ 18.3 billion), a remarkable 20% increase from AED 56.3 billion (US$ 15.3 billion) last year.
This financial achievement is attributed to the surging global demand for air transport since the lifting of pandemic travel restrictions.
Financial Resilience in Challenging Times
Noteworthy is the Group’s solid cash position of AED 42.7 billion (US$ 11.6 billion) as of September 30, 2023, underlining its financial stability and ability to utilize its robust cash reserves to meet business needs.
Emirates’ proactive approach is evident in repaying AED 9.2 billion of its COVID-19 related loans and disbursing AED 4.5 billion in dividends, showcasing financial responsibility and commitment to stakeholders.
His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, expressed pride in the organization’s achievement.
He attributes this success to the talent and commitment within the organization, the strength of the business model, and Dubai’s visionary policies that have shaped a resilient and progressive aviation sector.
Looking ahead, Sheikh Ahmed emphasized the Group’s agility in meeting customer demand, implementing service and product enhancements, and continuous investment in people, products, partnerships, and technology.
However, he also acknowledged potential challenges, including rising fuel prices, a strengthening US dollar, inflationary costs, and geopolitical uncertainties.
Emirates airline played a pivotal role in the Group’s success, expanding its global flight operations to meet increasing customer demand. The airline restored A380 operations to key destinations and launched daily non-stop services to Montreal, marking a strategic expansion.
Emirates strengthened its global presence through codeshare agreements with prominent airlines, fostering connectivity for customers.
The partnership extension with Qantas for another 5 years demonstrates the airline’s commitment to providing seamless travel experiences.
By 30 September, the airline was operating passenger and cargo services to 144 airports, utilising its entire Boeing 777 fleet and 104 A380s.
During the first six months of 2023-24, 10 A380 aircraft rolled out of Emirates’ retrofit programme with completely refreshed cabin interiors and latest onboard products including Premium Economy seats.
This enabled the airline to deploy its highly sought-after Premium Economy services on more new routes including New York JFK, Houston, San Francisco, Los Angeles, and Singapore.
Enhanced Customer Experience
Emirates’ commitment to customer satisfaction is evident in its initiatives, from a new city check-in facility at Dubai International Financial Centre to free onboard Wi-Fi for Emirates Skywards members.
A new global brand advertising campaign featuring Penelope Cruz further solidifies the airline’s dedication to enhancing the travel experience.
The airline’s operational metrics showcase substantial growth, with overall capacity increasing by 25% to 28.5 billion Available Tonne Kilometres (ATKM).
Passenger traffic and cargo services witnessed significant upticks, with 26.1 million passengers carried and 1,035,000 tonnes of cargo uplifted, reflecting the airline’s resilience in a challenging market.
Emirates’ stellar performance in the first half of 2023-24 culminated in a record-breaking net profit of AED 9.4 billion (US$ 2.6 billion), a 135% increase from the previous year.
Revenue, including other operating income, reached AED 59.5 billion (US$ 16.2 billion), showcasing the airline’s ability to activate capacity in response to demand and deliver exceptional value and services.
Despite increased operations, Emirates effectively managed costs, with direct operating costs (including fuel) growing by 9%.
Fuel, the largest component of operating costs, was prudently managed at 34%, compared to 38% in the same period last year.
Driven by strong demand and increased operations, Emirates’ EBITDA grew by 33%, reaching AED 19.5 billion (US$ 5.3 billion). The airline remains poised for future success in a dynamic market.
dnata’s Strategic Growth
dnata, the Emirates Group’s ground handling, catering, and travel services arm, experienced robust growth across its business divisions.
In the first half of 2023-24, dnata’s catering and airport services secured new contracts, showcasing its ability to deliver high-quality products and services despite operational challenges.
dnata’s commitment to innovation is evident in strategic investments and technology implementation.
Notable initiatives include acquiring an additional 29% stake in Imagine Cruising, implementing AI-powered solutions in cargo handling operations in Singapore, and transitioning to a biofuel blend for road transport vehicles in the UAE.
The results speak for themselves, with dnata’s revenue, including other operating income, reaching AED 9.3 billion (US$ 2.5 billion), a remarkable 27% increase from the previous year. The overall profit for dnata stands at AED 709 million (US$ 193 million), marking a substantial leap from the AED 236 million (US$ 64 million) reported in the same period last year.
dnata’s airport operations remain the largest contributor to revenue, with AED 4.1 billion (US$ 1.1 billion), an 18% increase from the previous year.
Flight catering and retail operations contributed AED 3.5 billion (US$ 942 million), showing a 45% increase, and the travel division contributed AED 1.4 billion (US$ 375 million), reflecting a 16% increase.
dnata’s operational achievements include handling 384,656 aircraft turns, a notable 11% increase, and uplifting 66.3 million meals, a 31% increase from the previous year.
These milestones demonstrate dnata’s resilience and adaptability in navigating challenges and meeting customer demands.
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