Emirates Group announces record half-year performance for 2023-24

Emirates Group today announced its half-year financial result, reporting a 2023-24 half-year net profit of AED 10.1 billion (US$2.7 billion), surpassing its record half-year profit of AED 4.2 billion ( 1.2 billion US dollars). last year by 138%.

The group also reported 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 .

Cluster 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 travel around the world, which has been on an upward trajectory since the last pandemic travel restrictions were lifted.

The group closed the first half of 2023-24 with a strong cash position of AED 42.7 billion (US$11.6 billion) on September 30, 2023, compared to AED 42.5 billion ( 11.6 billion US dollars) on March 31, 2023. The Group has been able to tap into its own cash reserves to support business needs, including debt repayments. So far, Emirates has repaid AED 9.2 billion of its COVID-19-related loans. The Group also paid AED 4.5 billion in dividends to its owner, as declared at the end of its 2022-23 financial year.

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and CEO of Emirates Airline and Group, saying,

“We are seeing the fruits 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 half-year performance. Our profit for the first six months of 2023-24 has almost equaled our record profit for the full year 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.

Sheikh Ahmed aggregate,

“For the second half of 2023-24, we expect customer demand across all our business divisions to remain healthy and we will remain agile in how we deploy our resources in this dynamic market. At the same time, we are closely monitoring “headwinds such as rising fuel prices, strengthening US dollar, inflationary costs and geopolitics.”

To support increased operations and business activities, the Emirates GroupThe employee base of, compared to March 31, 2023, grew 6% to a total headcount of 108,996 as of September 30, 2023. Both Emirates and DNA have ongoing recruitment campaigns to support your future needs.

Emirates airline

Emirates continued to grow 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 nonstop services to Montreal, a new destination and the airline’s second gateway to Canada.

Expand connectivity options for customers, Emirates signed 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 association between Emirates and Qantaswhich has seen more than 15 million travelers benefit from joint flight itineraries since its inception in 2013, has received approvals for a further five-year extension until 2027.

As of September 30, the airline operated passenger and cargo services to 144 airports, using its entire fleet of Boeing 777s and 104 A380s. During the first six months of 2023-24, 10 A380 aircraft left Emirates‘ modernization program with completely renovated cabin interiors and the latest onboard products, including Premium Economy seats. This allowed the airline to roll out its highly sought-after Premium Economy services on more new routes, including New York JFK, Houston, San Francisco, Los Angeles and Singapore.

In the first half of 2023-24, Emirates launched a new global brand advertising campaign with Hollywood actress Penélope Cruz; and introduced initiatives to improve the customer travel experience, including: a new city check-in facility at the Dubai International Financial Centre, free onboard Wi-Fi for Emirates Skywards members and a new ordering capability advance meal plan for customers to select their meal options in advance of the trip.

Overall capacity during the first six months of the year increased by 25% to 28.5 billion available tonne kilometers (ATKM) due to an expanded flight schedule. Capacity measured in available seat kilometers (ASKM) increased by 30%, while passenger traffic carried measured in revenue passenger kilometers (RPKM) increased by 35% with an average passenger seat factor of 81.5%, compared to 78.5% during the same period last year. year.

Emirates It transported 26.1 million passengers between April 1 and September 30, 2023, 31% more than last year. Emirates Skycargo increased 1,035,000 tonnes in the first six months of the year, an increase of 11% compared to the same period last year despite a general weakening in the global cargo market. This reflects the cargo division’s ability to meet customer demand with specialized products and the excellent network options offered by its freight and cargo operations.

Emirates Profits for the first half of 2023-24 hit a new record of AED 9.4 billion ($2.6 billion), compared to profits for the same period last year of AED 4 billion ($1.1 billion). Emirates revenue, including other operating income, of AED 59.5 billion (US$16.2 billion) increased 19% compared to AED 50.1 billion (US$13.7 billion) recorded in the same period last year . The airline’s record performance can be attributed to strong passenger demand for international travel in all markets and Emirates’ ability to activate capacity to meet demand; and offer customers great value and services.

Emirates‘Direct operating costs (including fuel) grew by 9% in line with the increase in operations. Fuel remains the largest component of the airline’s operating cost (34%), compared to 38% in the same period last year.

Driven by strong demand and increased trading over the six months, Emirates’ EBITDA grew 33% to AED 19.5 billion (US$5.3 billion) compared to AED 14.7 billion (US$4 billion) Americans) from the same period last year.

DNA

DNA continued to ramp up operations in 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 airport and catering services won significant new contracts and increased existing clients in its international operations. This shows dnata’s ability to serve the growing operations of airline customers and deliver high-quality products and services despite persistent operational challenges in many markets, such as skilled labor shortages, supply chain issues and inflationary pressures.

DNA It also continued to make strategic investments in its business and implement innovative technology and other initiatives to better respond to customer needs. Highlights for the first half of 2023-24 include the acquisition of an additional 29% stake in Imagine Cruising, bringing its stake in the UK’s leading cruise and holiday distributors to 81.4%; implementing 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 United Arab Emirates used by dnata Logistics, Arabian Adventures, Alpha Flight Services and City Sightseeing to reduce emissions and address rising customer expectations for transport options with smaller environmental footprint.

DNAAED revenue, including other operating income, of AED 9.3 billion (US$2.5 billion) increased 27% compared to AED 7.3 billion (US$2 billion) generated in the same period last year.

dnata’s total profit is AED 709 million ($193 million), compared to AED 236 million ($64 million) in the same period last year.

DNAChina’s airport operations remain the largest contributor to revenue at AED 4.1 billion (US$1.1 billion), an increase of 18% compared to the same period last year, as its airline customer operations continued to recover, particularly in Australia, Singapore and the United Kingdom. and the United Arab Emirates. Across all its operations, the number of aircraft shifts handled by dnata increased 11% to 384,656, and it handled 1.3 million tonnes of cargo, a decline of 5%, reflecting a further weakening of the global air transport market after a pandemic-driven surge.

DNAAED’s in-flight retail and catering operations contributed AED3.5 billion (US$942 million) to its revenue, an increase of 45%, with strong production increases in Australia, Italy, the UK and the US. USA to meet customer demand. The number of meals increased increased 31% to 66.3 million meals, compared to 50.5 million meals last year.

DNAAED’s travel division contributed AED 1.4 billion (US$375 million) to revenue, an increase of 16% compared to AED 1.2 billion (US$323 million) in the same period last year. dnata saw strong contributions from Destination Asia, its destination management business in Asia and its cruise vacation business, Imagine Cruising, in which dnata has acquired a majority stake. The division reported underlying total transaction value (TTV) sales of AED4 billion (US$1.1 billion), compared to AED3.5 billion (US$960 million) for the same period last year.

News source: Emirates News Agency