Emirates Group posts 2023-24 H1 net profit of AED 10.1 billion
Group’s employee base grows to 108,996
The Dubai-based Emirates Group has announced a 2023-24 half-year net profit of AED 10.1 billion ($ 2.7 billion), surpassing its record half-year profit of AED 4.2 billion ($ 1.2 billion) last year by 138%.
The Group also reported an EBITDA of AED 20.6 billion ($ 5.6 billion), a significant improvement from AED 15.3 billion ($ 4.2 billion) during the same period last year, illustrating its operating solid profitability.
Group revenue was AED 67.3 billion ($ 18.3 billion) for the first six months of 2023-24, up 20% from AED 56.3 billion ($ 15.3 billion) last year. This was driven by solid demand for air transport worldwide, which has increased since the previous pandemic travel restrictions were lifted.
The Group closed the first half year of 2023-24 with a solid cash position of AED 42.7 billion ($ 11.6 billion) on 30 September 2023, compared to AED 42.5 billion ($ 11.6 billion) on 31 March 2023. The Group has been able to tap into its firm cash reserves to support business needs, including debt payments. So far, Emirates has repaid AED 9.2 billion of its Covid-19-related loans. The Group also paid its owner AED 4.5 billion in dividends, as declared at the end of its 2022-23 financial year.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, said: “We are seeing the fruition of our plans to return more robust and better from the dark days of the pandemic.
“The Group has surpassed previous records to report our best-ever half-year performance. Our profit for the first six months of 2023-24 has nearly matched our record full-year profit in 2022-23. This is a tremendous achievement that speaks to the talent and commitment within the organisation, the strength of our business model, and the power of Dubai’s vision and policies that have enabled the creation of a strong, resilient, and progressive aviation sector.
To support increased operations and business activities, the Emirates Group’s employee base, compared to March 31, 2023, grew 6% to an overall count of 108,996 on September 30, 2023. Both Emirates and dnata have ongoing recruitment drives to support their future requirements.
Emirates continued to increase its global flight operations, adding capacity and connections through its Dubai hub to meet customer demand across markets. During the first half of 2023-24, the airline restored A380 operations to Bali, Beijing, Birmingham, Casablanca, Nice, Shanghai, and Taiwan.
In July, it launched daily non-stop services to Montreal, a new destination and the airline’s second gateway in Canada.
Expanding connectivity options for customers, Emirates entered and enhanced codeshare or interline agreements with eight airlines in the first six months of 2023-24: Aegean Airlines, Air Canada, Etihad Airways, Kenya Airways, Philippine Airlines, Maldivian, Sri Lankan Airlines, and United Airlines. The codeshare partnership between Emirates and Qantas, which has seen over 15 million travellers benefit from joint flight itineraries since its establishment in 2013, received approvals for a further 5-year extension until 2027.
Emirates profit for the first half of 2023-24 hit a new record of AED 9.4 billion ($ 2.6 billion), compared to last year’s profit of AED 4.0 billion ($ 1.1 billion). Emirates revenue, including other operating income, of AED 59.5 billion ($ 16.2 billion) was up 19% compared with the AED 50.1 billion ($ 13.7 billion) recorded in the same period last year. The airline’s record performance is attributable to the strong passenger demand for international travel across markets and Emirates’ ability to activate capacity to match demand and offer customers great value and services.
Emirates’ direct operating costs (including fuel) grew by 9% in line with increased operations. Fuel remains the most significant component of the airline’s operating cost (34%), compared to 38% in the same period last year.
Driven by strong demand and increased operations during the six months, Emirates’ EBITDA grew by 33% to AED 19.5 billion ($ 5.3 billion) compared to AED 14.7 billion ($ 4.0 billion) for the same period last year.
dnata’s revenue, including other operating income, of AED 9.3 billion ($ 2.5 billion) increased by 27% compared to AED 7.3 billion ($ 2.0 billion) generated in the same period last year.
Overall profit for dnata is AED 709 million ($ 193 million), compared to the same period last year’s AED 236 million ($ 64 million).
dnata’s airport operations remain the most significant contributor to revenue with AED 4.1 billion ($ 1.1 billion), an 18% increase compared to the same period last year, as its airline customers’ operations continued to pick up, particularly in Australia, Singapore, the UK, and the UAE. Across its operations, the number of aircraft turns handled by dnata increased by 11% to 384,656, and it took 1.3 million tonnes of cargo, down by 5%, reflecting further softening of the global air freight market after a pandemic-driven surge.
dnata’s flight catering and retail operations contributed AED 3.5 billion ($ 942 million) to its revenue, up 45%, with solid production increases in Australia, Italy, the UK, and the US to meet customer demand. The number of meals uplifted increased by 31% to 66.3 million meals compared to last year’s 50.5 million meals.
dnata’s travel division contributed AED 1.4 billion ($ 375 million) to revenue, up 16% compared to AED 1.2 billion ($ 323 million) for the same period last year. dnata saw vital contributions from Destination Asia, its destination management business in Asia, and from its cruise holidays business, Imagine Cruising, in which dnata has acquired a controlling interest. The division reported underlying total transactional value (TTV) sales of AED 4.0 billion ($ 1.1 billion), compared to AED 3.5 billion ($ 960 million) for the same period last year.
Featured image: Emirates Group employed 108,996 staffers as of September 30, 2023. Image: Emirates Group
Last Updated on 3 weeks by Arnold Pinto