LONDON – Emirates Group has recorded half-year profits of $1.2 billion (4.2 billion Dirhams). The group comprising of Emirates Airlines and dnata, one of the world’s biggest air service providers, whose services feature at many airports around the world.
Airline-wise, operating revenues came in at $13.7 billion (50.1 billion AED), which boils down to a $1.1 billion profit (4 billion AED).
When compared to the same period last year, when the world was embroiled in pre-flight covid testing and border closures around the world, it amounts to a +$2.7 billion change in fortunes.
Emirates carried 20 million passengers between 1 April and 30 September, a 228% rise in the figure from the same time in 2021.
They continued to expand their codeshare arrangements with the world’s airlines, striking up 12 new agreements that will broaden connectivity options for travelers around the world significantly.
His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, “The Group’s record performance for the first six months of 2022-23 is the result of forward planning, agile business response, and the efforts of our talented and committed workforce.”
“Across the Group, the recovery of our operations accelerated as more countries eased and removed travel restrictions.”
“We were ready and amongst the first movers to serve the strong customer demand thanks to our robust business plans, the support of our industry partners, and our ongoing investments in people, technology, and products and services.”
The airline’s average passenger seat factor was 78.5% which proved to be a 30.5% increase in 2021’s capacity. Inescapably, the rising fuel costs around the world proved to be a cost burden that would eat into revenues.
Fuel costs for Emirates are said to have tripled during the first six months of this year, accounting for 38% of their operating costs.
Airport services provider dnata saw a big increase in its operations as passenger traffic and airline operations increased with the opening of borders and lessening in restrictions.
This saw its revenue double to $2 billion (7.3 billion AED) when compared to the same time in 2021.
Customer demand at dnata improved significantly across the United Arab Emirates, United States, Italy, and United Kingdom, proved by a 37% rise in revenue.
Cargo operations lessened slightly (-2%) due to customer demand and the requirement to focus more on passenger operations.
The first half of the year has seen dnata growing its ground operations; dnata purchased German handling services provider Wisskirchen Handling Services.
The sole provider of ground handling services at Cologne’s Bonn Cargo Centre. It also bought out the remaining 30% share of the business it was a majority holder in to acquire the remaining stake of its ground handling operations in Brazil.
The next 6 months
“For the coming months, we remain focussed on restoring our operations to pre-pandemic levels and recruiting the right skills for our current and future requirements.”
“We expect customer demand across our business divisions to remain strong in H2 2022-23.”
“However, the horizon is not without headwinds, and we are keeping a close watch on inflationary costs and other macro-challenges such as the strong US dollar and the fiscal policies of major markets.” Continued Sheikh Ahmed bin Saeed Al Maktoum.
Emirates added two new 777 cargo aircraft to replace some of its aging fleets in a bid to improve its green credentials.
As has been well documented on AviationSource News, they are currently retrofitting all of its A380 with premium economy cabins and plans to do the same to its 777 aircraft over the coming months.
Dnata endeavors to continue to provide high-quality services to its customers and have recently committed to implementing green technologies across its businesses.
They have set aside $100 million dollars to support these green initiatives and have invested $17 million dollars into its operations in Erbil, Iraq. The operations carried out there are an advanced cool chain facility, a bus maintenance facility, and a new cargo warehouse.