In an extraordinary display of resilience and profitability, the Emirates Group has unveiled its best-ever financial results for the first half of the 2023-24 fiscal year. The aviation giant reported a staggering net profit of AED 10.1 billion (US$ 2.7 billion), marking a remarkable 138% increase from the same period in the previous year. This achievement eclipses the Group’s record half-year profit of AED 4.2 billion (US$ 1.2 billion) set in the previous fiscal year.
The robust financial performance was driven by a resurgence in global demand for air travel, which surged across regions following the lifting of pandemic-related travel restrictions. The Group’s revenue soared to AED 67.3 billion (US$ 18.3 billion), representing an impressive 20% increase from the previous year’s figure of AED 56.3 billion (US$ 15.3 billion).
Emirates, the flagship airline of the Emirates Group, played a pivotal role in this outstanding performance. The airline reported a revenue of AED 59.5 billion (US$ 16.2 billion), a 19% increase from the previous year. Alongside this remarkable revenue growth, Emirates achieved a profit of AED 9.4 billion (US$ 2.6 billion), a 134% surge compared to last year.
Emirates Group employees.
Emirates’ remarkable performance can be attributed to its capacity ramp-up, allowing it to cater to the burgeoning demand for air travel worldwide efficiently. The airline has also continued to invest in enhancing its products and services, further solidifying its position as a preferred choice for passengers.
dnata, the renowned air services provider and part of the Emirates Group, also experienced significant growth. dnata’s revenue surged by an impressive 27% to reach AED 9.3 billion (US$ 2.5 billion), accompanied by a staggering 200% increase in profit, amounting to AED 709 million (US$ 193 million) compared to the same period in the previous year.
The Emirates Group’s exceptional performance is a testament to its commitment to recovery and ability to adapt swiftly to changing market conditions. The organization’s financial prowess has allowed it to tap into its robust cash reserves, currently at AED 42.7 billion (US$ 11.6 billion) as of September 30, 2023. This liquidity has supported various business needs, including debt payments and dividend disbursements, with AED 9.2 billion of COVID-19-related loans already repaid.
His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group expressed his pride in the outstanding performance. “We are seeing the fruition of our plans to return stronger and better from the dark days of the pandemic,” he stated. “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 organization, 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.”
Emirates A380 Landing.
Sheikh Ahmed emphasized that the Group’s agility in ramping up operations and implementing service and product enhancements had contributed to its success. He also highlighted the ongoing commitment to investing in people, products, partnerships, and technology to ensure the Emirates Group remains future-ready.
As the second half of the fiscal year approaches, the Emirates Group remains cautiously optimistic about continued customer demand across its business divisions. However, it remains vigilant in monitoring potential headwinds, such as rising fuel prices, a strengthening US dollar, inflationary costs, and geopolitical developments.
To support its expanding operations, the Emirates Group has increased its employee base by 6% compared to March 31, 2023, totalling 108,996 employees as of September 30, 2023. Both Emirates and dnata are actively recruiting to meet their future requirements.
Emirates Airline’s Impressive Growth.
Emirates Airlines stellar performance during the first half of 2023-24 was characterized by a significant expansion of its global flight operations. The airline responded to soaring customer demand by adding capacity and connections through its Dubai hub.
In the first six months of the fiscal year, Emirates reinstated A380 operations in several key destinations, including Bali, Beijing, Birmingham, Casablanca, Nice, Shanghai, and Taiwan. Additionally, it launched daily non-stop services to Montreal, marking a new destination and the airline’s second gateway in Canada.
To enhance connectivity options for passengers, Emirates forged and strengthened codeshare and interline agreements with eight airlines during the period, including Aegean Airlines, Air Canada, Etihad Airways, Kenya Airways, Philippine Airlines, Maldivian, Sri Lankan Airlines, and United Airlines. Notably, the codeshare partnership with Qantas, established in 2013, received approvals for a further 5-year extension until 2027, benefiting over 15 million travellers.
Emirates further modernized its passenger experience, launching a global brand advertising campaign featuring Hollywood actor Penelope Cruz and introducing initiatives such as a new city check-in facility at Dubai International Financial Centre, free onboard Wi-Fi for Emirates Skywards members, and a meal pre-ordering capability for travellers to select their meal options in advance.
The airline’s capacity substantially increased during the first half of the fiscal year, with Available Tonne Kilometres (ATKM) expanding by 25% to reach 28.5 billion. Available Seat Kilometres (ASKM) also increased by 30%, while Revenue Passenger Kilometres (RPKM) grew by 35%, achieving an average Passenger Seat Factor of 81.5%, compared to 78.5% during the same period last year.
Emirates successfully carried 26.1 million passengers between April 1 and September 30, 2023, marking a remarkable 31% increase from the previous year. Emirates Skycargo, the airline’s cargo division, uplifted 1,035,000 tonnes of cargo during the first half of the year, an 11% rise compared to last year, despite the global cargo market experiencing softening.
The airline’s profit for the first half of 2023-24 reached a new record of AED 9.4 billion (US$ 2.6 billion), a significant leap from the previous year’s profit of AED 4.0 billion (US$ 1.1 billion). This remarkable performance was attributed to strong passenger demand for international travel and Emirates’ ability to efficiently match capacity with demand while delivering exceptional value and services.
Emirates’ direct operating costs, including fuel, increased by 9% in line with its expanded operations. Fuel remained the largest component of the airline’s operating costs, accounting for 34%, compared to 38% during the previous year. Driven by strong demand and increased operations, Emirates’ EBITDA grew by an impressive 33% to AED 19.5 billion (US$ 5.3 billion), compared to AED 14.7 billion (US$ 4.0 billion) for the same period the previous year.
dnata’s Resilience and Growth.
dnata, the air services provider within the Emirates Group, continued to amplify its operations across cargo and ground handling, catering and retail, and travel services. This expansion drove robust revenue growth during the first six months of 2023-24.
In the same period, dnata’s catering and airport services secured significant new contracts and expanded its customer base across international operations. This achievement underscored dnata’s ability to meet the growing operational needs of its airline customers while delivering top-tier products and services. Despite operational challenges in various markets, including a skilled workforce shortage, supply chain disruptions, and inflationary pressures, dnata demonstrated resilience and adaptability.
dnata’s commitment to innovation and customer-centric solutions was evident in several key initiatives. The company acquired an additional 29% stake in Imagine Cruising, raising its shareholding to 81.4% in the UK’s leading cruise and stay holiday distributor. In addition, dnata implemented AI-powered solutions to enhance its cargo handling operations in Singapore. Furthermore, the organization transitioned to a biofuel blend for its road transport vehicles in the UAE, aligning with rising customer expectations for environmentally friendly transport options.
dnata reported revenue, including other operating income, of AED 9.3 billion (US$ 2.5 billion), representing a remarkable 27% increase compared to the previous year’s period. The company’s overall profit reached AED 709 million (US$ 193 million), substantially growing from the previous year’s AED 236 million (US$ 64 million).
The airport operations segment remained dnata’s most significant contributor to revenue, generating AED 4.1 billion (US$ 1.1 billion), marking an 18% increase compared to the previous year’s period. This growth was particularly notable in Australia, Singapore, the UK, and the UAE, where airline customers’ operations experienced a notable uptick. Across its operations, dnata handled 384,656 aircraft turns, representing an 11% increase, and managed 1.3 million tonnes of cargo despite a 5% softening in the global air freight market following the pandemic-driven surge.
dnata’s flight catering and retail operations contributed AED 3.5 billion (US$ 942 million) to its revenue, experiencing a robust 45% growth. This growth was fueled by increased production in Australia, Italy, the UK, and the US to meet customer demand. The number of meals uplifted also surged by 31% to 66.3 million, compared to last year’s 50.5 million meals.
The travel division of dnata contributed AED 1.4 billion (US$ 375 million) to revenue, marking a 16% increase compared to the same period the previous year. Notable contributions came from Destination Asia, dnata’s destination management business in Asia, and Imagine Cruising, the cruise holidays business in which dnata acquired a controlling interest. The division reported underlying total transactional value (TTV) sales of AED 4.0 billion (US$ 1.1 billion), compared to AED 3.5 billion (US$ 960 million) for the same period the previous year.
With these outstanding financial results, the Emirates Group continues reaffirming its position as a global aviation leader, demonstrating resilience, adaptability, and a commitment to delivering exceptional services to customers and partners.
Written by: Bridget Gomez
