Dubai-based Emirates Group has announced its half-year financial results for the 2023-24 fiscal year. It recorded a net profit of AED10.1 billion ($2.7 billion), exceeding its record half-year profit of $1.2 billion last year by 138 percent.
These groundbreaking results reflect the group’s ability to bounce back from the challenges posed by the COVID-19 pandemic and capitalize on a surge in global air travel demand.
Strong performance highlights
Emirates Group’s half-year performance has surpassed all expectations, underlining its resilience and robust business strategy.
The group reported an EBITDA of AED20.6 billion ($5.6 billion), showcasing its strong operating profitability. This represents a significant improvement from AED15.3 billion ($4.2 billion) in the same period last year.
Moreover, Emirates Group’s revenue stood at AED67.3 billion ($18.3 billion) for the first six months of 2023-24. This marks a 20 percent increase from AED 56.3 billion ($15.3 billion) in the previous year. This growth was driven by the strong demand for air transport worldwide.
Resilience and adaptability
By the end of September 2023, the Group had a robust cash position of AED42.7 billion. That is compared to AED42.5 billion as of March 31, 2023. Utilizing its substantial cash reserves, the Group effectively addressed various business requirements. This includes the repayment of AED9.2 billion in COVID-19-related loans. Additionally, as previously declared in its 2022-23 financial year, the Group distributed AED4.5 billion in dividends to its owner.
Sheikh Ahmed Bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, attributed this success to the dedication of the organization. Emirates’ robust business model and Dubai’s visionary policies have fostered a resilient aviation sector.
Looking ahead, Sheikh Ahmed remains optimistic about the second half of 2023-24. He expects customer demand to remain healthy across the group’s business divisions. However, he acknowledges potential challenges, including rising fuel prices, inflationary costs, and geopolitical factors, which the group will closely monitor.
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Emirates’ expansion and innovation
Emirates Airlines has continued to expand its global flight operations, restoring A380 operations to several destinations and launching new services. The airline also expanded its connectivity options through codeshare agreements with eight airlines. The airlines include Aegean Airlines, Air Canada, Etihad Airways, Kenya Airways, Philippine Airlines, Maldivian, Sri Lankan Airlines, and United Airlines. Moreover, it received approval for a 5-year extension of its partnership with Qantas.
By September 2023, the airline operated passenger and cargo services at 144 airports. It was utilizing its entire Boeing 777 fleet and 104 A380 fleet. The airline reported strong passenger traffic and an increase in revenue. That is due to its ability to activate capacity to match demand and offer competitive services.
Emirates also launched a new global brand advertising campaign. It introduced initiatives to enhance customer travel experience, including:
- New city check-in facility at Dubai International Financial Centre
- free onboard Wi-Fi for Emirates Skywards members
- new meal pre-ordering capability for customers to select their meal options in advance
dnata’s growth and innovation
dnata continued to expand operations across its cargo and ground handling, catering and retail, and travel services businesses. This drove strong revenue growth in the first six months of 2023-24.
In the first half of 2023-24, dnata’s catering and airport services won new contracts and grew existing customer relationships. That is in light of multiple operational challenges in many markets. Challenges included shortage of skilled workforce, supply chain issues, and inflationary pressures.
Notably, dnata acquired an additional 29 percent stake in Imagine Cruising, the UK’s leading cruise and stay holiday distributor. Moreover, the company implemented AI-powered solutions for cargo handling and switched to biofuel for road transport vehicles. It has been increasingly addressing environmental concerns to meet customer expectations.
dnata’s revenues recorded AED9.3 billion ($2.5 billion). That is a 27 percent increase compared to AED7.3 billion ($2.0 billion) generated in the same period last year. Overall profit for dnata totaled AED709 million ($193 million), compared to the same period last year’s AED236 million ($64 million).
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