Emirates Group announces record AED10.1 bn half-year net profit for 2023-24
DUBAI, United Arab Emirates—After posting a record performance last year, the Emirates Group announced it made its best-ever six-month financial result for 2023-2024 with a net profit of AED 10.1 billion (USD 2.7 billion), surpassing its record half-year profit of AED 4.2 billion (US$ 1.2 billion) last year by 138%.
The Group also reported an EBITDA of AED 20.6 billion (US$ 5.6 billion), a significant improvement from AED 15.3 billion (US$ 4.2 billion) during the same period last year, illustrating its strong operating profitability.
Group revenue was AED 67.3 billion (US$ 18.3 billion) for the first six months of 2023-24, up 20% from AED 56.3 billion (US$ 15.3 billion) last year. This was driven by strong demand for air transport across the world, which has been on an upward trajectory since the last 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 (US$ 11.6 billion) on 30 September 2023, compared to AED 42.5 billion (US$ 11.6 billion) on 31 March 2023. The Group has been able to tap on its own strong 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 AED 4.5 billion in dividend to its owner, as declared at the end of its 2022-23 financial year.
His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: “We are seeing the fruition of our plans to return stronger 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.
“For the second half of 2023-24, we expect customer demand across our business divisions to remain healthy and we will stay agile in how we deploy our resources in this dynamic marketplace. At the same time, we are keeping a close watch on headwinds such as rising fuel prices, the strengthening US dollar, inflationary costs, and geo-politics,” he added.
To support increased operations and business activities, the Emirates Group’s employee base, compared to 31 March 2023, grew 6% to an overall count of 108,996 on 30 September 2023. Both Emirates and dnata have ongoing recruitment drives to support their future requirements.
Emirates airline
By 30 September, the airline was operating passenger and cargo services to 144 airports, utilizing its entire Boeing 777 fleet and 104 A380s.
In the first half of 2023-24, Emirates launched a new global brand advertising campaign featuring Hollywood actor Penelope Cruz; and introduced initiatives to enhance customer travel experience including a new city check-in facility at Dubai International Financial Centre, free onboard wi-fi for Emirates Skywards members, and a new meal pre-ordering capability for customers to select their meal options in advance of travel.
Emirates carried 26.1 million passengers between 1 April and 30 September 2023, up 31% from the same period last year.
Emirates Skycargo uplifted 1,035,000 tonnes in the first six months of the year, an 11% increase compared to the same period last year despite an overall softening in the global cargo market. This reflects the cargo division’s ability to meet customer demand with specialised products, and the excellent network options on offer with its freighter and bellyhold cargo operations.
Emirates revenue, including other operating income, of AED 59.5 billion (US$ 16.2 billion) was up 19% compared with the AED 50.1 billion (US$ 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.
dnata
In the first half of 2023-24, dnata’s catering and airport services won significant new contracts and grew existing customers across its international operations.
Highlights in the first half of 2023-24 include: the acquisition of an additional 29% stake in Imagine Cruising, bringing to 81.4% its shareholding in UK’s leading cruise and stay holiday distributors; the implementation of AI-powered solutions to enhance dnata’s cargo handling operations and capabilities in Singapore; and the switch to a biofuel blend for road transport vehicles in the UAE used by dnata Logistics, Arabian Adventures, Alpha Flight Services, and City Sightseeing to reduce emissions and address rising customer expectations for transport options with lower environmental footprint.
dnata’s revenue, including other operating income, of AED 9.3 billion (US$ 2.5 billion) increased by 27% compared to AED 7.3 billion (US$ 2.0 billion) generated in the same period last year.
Overall profit for dnata is AED 709 million (US$ 193 million), compared to same period last year’s AED 236 million (US$ 64 million).
