The Emirates Group has released its 2022-23 Annual Report, reporting its most profitable year ever on the back of strong demand across its businesses.
The year has seen Emirates achieve new record profits – a complete turnaround from its loss position last year.
2022-23 overview
Let’s take a look at some of the key events and milestones for both the Emirates airline group and the dnata ground handling operation.
Both Emirates and dnata ground handling and flight catering saw significant revenue increases in 2022-23 as the Group expanded its air transport and travel-related operations following the removal of nearly all pandemic-related restrictions around the world.
Viewed overall, for the financial year ended 31 March 2023, the Emirates Group posted a record profit of AED 10.9 billion (US$ 3.0 billion).
This compares with an AED 3.8 billion (US$ 1.0 billion) loss for last year. The turnaround is largely attributed to the aggressive demand for core services across the Group’s operations.
Emirates passenger operations
Emirates’ total passenger and cargo capacity increased by 32% to 48.2 billion ATKMs in 2022-23, as the airline continued to reinstate passenger services across its network in line with the lifting of pandemic-related flight and travel restrictions.
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Network
In addition to launching services to Tel Aviv, Emirates relaunched flights to six destinations and increased operations to 62 cities across its network throughout the year to serve strong customer demand.
By 31 March 2023, the Emirates network comprised 150 destinations across six continents, including 9 cities served by its freighter fleet only.
Emirates also deployed its flagship A380 aircraft to even more cities during the year, bringing its A380 network to 43 destinations as of 31 March 2023.
Code share agreements
Enabling its customers access even more destinations, Emirates signed agreements with new codeshare partners in 2022-23 most notably with United Airlines and Air Canada.
Emirates also reinforced its strategic partnerships with Qantas and flydubai and added new interline and codeshare partners: Airlink, AEGEAN, ITA Airways, Air Tanzania, Bamboo Airways, Batik Air, Philippine Airlines, Royal Air Maroc and Sky Express.
Fleet
Emirates received two new 777 freighter aircraft during the financial year. It also phased out 4 older aircraft comprising of 2 A380, 1 Boeing 777-300ERs and 1 Freighter. Its total fleet count at the end of March was 260 units, with a youthful average fleet age of 9.1 years.
Emirates’ order book stands at 200 aircraft, including 5 additional Boeing 777-300ER freighter orders announced during 2022-23.
Passenger services and uplift
Emirates carried 43.6 million passengers (up 123%) in 2022-23, with seat capacity up by 78%. The airline reports a Passenger Seat Factor of 79.5%, compared with last year’s passenger seat factor of 58.6%.
It experiences a 7% increase in passenger yield to 37.5 fils (10.2 US cents) per Revenue Passenger Kilometre (RPKM), due to a change in cabin and route mix, fares and currency.
Emirates continued to invest in delivering ever better customer experiences. During the year, it launched its full Premium Economy experience to hugely positive customer feedback, brought into service the first 6 of its newly retrofitted A380s with completely refreshed cabin interiors.
It also announced a US$ 350 million investment in new generation inflight entertainment systems for its A350 fleet.
Cargo operations
Emirates SkyCargo delivered a solid performance, contributing 16% of the airline’s revenue despite a reduction in available capacity as aircraft that were temporarily converted into “mini freighters” during the pandemic returned to full passenger service.
During the year, the cargo division signed commercial MoUs with United Airlines and Air Canada to expand its network reach and capacity for customers.
Emirates SkyCargo also deployed its expertise and capacity to transport relief goods to Pakistan, Turkey and Syria in partnership with Dubai’s International Humanitarian City.
With steady air freight demand throughout the year, Emirates’ cargo division reported a solid revenue of AED 17.2 billion (US$ 4.7 billion). This was a 21% decline over last year’s exceptional performance caused by the pandemic.
Tonnage carried declined by 14% to reach 1.8 million tonnes, due to the reduction in available freighter capacity for the entire year with the reinstatement of more passenger services.
At the end of 2022-23, Emirates’ SkyCargo’s total freighter fleet stood at 11 Boeing 777Fs.
dnata performance
Dubai National Air Travel Agency (dnata) is an Emirati airport services provider which provides aircraft ground handling, cargo, travel, and flight catering services across five continents
Recovery from the pandemic was felt across almost all dnata businesses, and in 2022-23 dnata increased its profit by 201% to AED 331 million (US$ 90 million).
With growing flight and travel activity across the world, dnata’s total revenue increased by 74% to AED 14.9 billion (US$ 4.1 billion). dnata’s international businesses account for 72% of its revenue, an increase of 10%pts from the previous year.
Revenue from dnata’s Airport Operations, including ground and cargo handling increased to AED 7.2 billion (US$ 2.0 billion).
The number of aircraft turns handled by dnata globally grew by 35% to 712,383, cargo handled declined by 8% to 2.7 million tonnes, reflecting the increased flight activity across markets as the last pandemic restrictions lifted and dnata’s customers reinstated services.
Summary
Commenting on the Group’s 2022-23 turnaround performance, HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group said:
“We had anticipated the strong return of travel, and as the last travel restrictions lifted and triggered a tide of demand, we were ready to expand our operations quickly and safely to serve our customers.”
“As a result, we have delivered a record financial performance and cash balance for our financial year 2022-23.”
“This reflects the strength of our proven business model, our careful forward planning, the hard work of all our employees, and our solid partnerships across the aviation and travel ecosystem,” he concluded.
