Dubai’s Emirates Group has announced its strongest financial performance to date for the fiscal year 2023-24, achieving remarkable profits, revenue, and cash asset levels.
The company reported an impressive total profit of AED 18.7 billion, marking an exceptional 71 percent surge compared to the previous year. The Group announced that it will be distributing $1.89 billion in dividends to its parent company, the Investment Corporation of Dubai.
The latest figures were revealed by Sheikh Ahmed Bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman of Dubai Airports, Chairman and Chief Executive Officer of Emirates Airline & Group via an X (formerly known as Twitter) post.
“Huge credit is also due to the UAE’s visionary leaders, especially HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. It is thanks to their leadership and the nation’s progressive policies that the Emirates Group is able to flourish. Both Emirates and dnata have forged successful business models leveraging Dubai’s unique advantages, in turn generating enormous value for Dubai and the communities they serve around the world,” Sheikh Ahmed said in a statement.
Emirates invests $ 2.4 billion in new aircraft, facilities, equipment, companies, and the latest technologies
The company invested $2.4 billion dollars in new aircraft, facilities, equipment, companies and technologies to support its growth plans.
Its total workforce grew 10 percent to over 112,000 employees, a record high, as it continued recruiting globally to expand operations and build future capabilities.
Sustainability efforts were a major focus during the year. As the UAE hosted COP28 for climate action, the company signed new agreements to use sustainable aviation fuel at its Dubai hub for the first time, as well as in Amsterdam and Singapore.
It operated the first A380 test flight with one engine running entirely on sustainable fuel to gather data supporting industry efforts to enable fully sustainable flying.
Recognising airlines have few viable options currently to significantly reduce carbon emissions, the company established a $200 million fund for research on reducing fossil fuel impact in commercial aviation.
It also helped form a UAE research group on renewable and advanced aviation fuels and joined a UK initiative focused on producing low-carbon fuels, including for aviation.
Catering and retail income jumped 35 percent. Meals supplied to airlines increased 10 percent to 123 million. New catering contracts were signed at several international airports.
Travel services also showed great growth. Earnings rose 48 percent and total transaction value went up 27 percent. Partnerships expanded dnata’s product offerings across corporate and leisure travel.
Emirates passenger, cargo capacity grows by 20 percent
Emirates’ total passenger and cargo capacity grew by 20 percent to 57.7 billion ATKMs, nearly reaching pre-pandemic levels.
More connection options were provided by restarting Tokyo Haneda service and adding flights to 29 destinations.
New daily flights to Montreal began and codeshare agreements with 11 airlines extended network reach. The network comprised 151 destinations across six continents served by passenger and freighter aircraft.
The A380 and Premium Economy products were brought to more cities as 16 more aircraft completed the $2 billion cabin retrofit program. A380s served 49 destinations and Premium Economy was available to 15 cities.
The total fleet was 260 units with an average age of 10.1 years. Emirates has orders for 310 more aircraft worth $58 billion from the Dubai Airshow to replace older aircraft and support growth.
Higher capacity and strong demand led to a 13 percent revenue rise to $33 billion. Currency fluctuation negatively impacted profits by $0.6 billion. Cashflow was $10.3 billion enabling growth. Operating costs rose 8 percent and fuel was 34 percent of costs despite an 18 percent lower average price from hedging. Record profit was $4.7 billion with a 14.2 percent margin, the best performance.
Passengers grew 19 percent to 51.9 million with 21 percent higher seat capacity. Load factor was 79.9 percent rising from last year. Yield declined 2 percent due currency, fares and routes.
Lounges were refurbished serving premium customers in 8 cities. Chauffeur drive services resumed to 82 cities and launched in 3 countries. Inflight enhancements included loungewear and meal pre-ordering in Business Class.
Cargo carried 2.2 million tonnes, up 18 percent from leasing 3 freighters. Demand was high for logistics solutions via the global network and Dubai hub. Revenue was $3.7 billion contributing 11 percent despite a 32 percent yield fall to pre-pandemic levels. New healthcare cargo solutions launched.
Record catering revenues of $264 million came from airport traffic growth supplying 76.9 million meals, 19 percent more. Retail revenue rose 18 percent to $796 million from tourism growth. Hotel revenue fell 2 percent due a resort closure.
Debt was reduced substantially by repaying an extra $596 million borrowed during COVID. Hedging mitigated fuel and rate risks enhancing stability and predictability. Highest ever cash assets were $11.7 billion, 15 percent higher than March 2023.
dnata reports record results as travel demand surges
Both dnata and Emirates airline delivered very strong profits and earnings. dnata, which provides airport services, catering and travel, had its most successful year to date.
Revenue for dnata grew 29 percent to a new high of AED19.2 billion. All divisions performed well due to more flights and passengers. Airport ground and cargo handling revenue was up as dnata won new contracts worldwide.
Overall dnata profit multiplied over three times to AED1.4 billion. This strong financial position allows dnata to keep investing for the future. New facilities and technology were added across its global operations.
“We enter our 2024-25 financial year on strong foundations for continued growth. Emirates will receive delivery of 10 new A350 aircraft in 2024-25, adding to our fleet mix and supporting the next phase of its network growth. dnata will continue to leverage synergies and scale across its business divisions to grow its footprint and capabilities. In tandem, we are investing resources to minimise our environmental impact, develop our people, look after our customers and the communities we serve,” Sheikh Ahmed said.
At Emirates airline, revenue beat records hitting AED121.2 billion, up 13 percent. Emirate carried over 51 million passengers, a rise of 19 percent. More flights and destinations combined with high demand meant great results.
Despite challenges, Emirates had the most profit yet at AED17.2 billion.The Group was able to quickly respond to customer needs. It plans further aircraft, training and sustainable fuel investments after two bumper years of profits.
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