Emirates Group announces a record half-year profit

Emirates Group made this announcement:

  • Group: Record half-year profit of AED 4.2 billion (US$ 1.2 billion) reflects strong turnaround and recovery after last year’s loss of AED 5.7 billion (US$ 1.6 billion). Revenue up 128% to AED 56.3 billion (US$ 15.3 billion).
  • Emirates: Revenue up 131% to AED 50.1 billion (US$ 13.7 billion), and profit of AED 4.0 billion (US$ 1.1 billion) compared to AED 5.8 billion (US$ 1.6 billion) loss for the same period last year. Performance shows airline’s ability to meet strong passenger demand across regions with capacity ramp up and high quality products.
  • dnata: Revenue doubled to AED 7.3 billion (US$ 2.0 billion), profit of AED 236 million (US$ 64 million) compared to AED 85 million (US$ 23 million) for the same period last year. Cost inflation across the business dampens performance even as operations ramp up.

The Emirates Group announced its half-year results for its 2022-23 financial year.

The Group is reporting a 2022-23 half-year net profit of AED 4.2 billion (US$ 1.2 billion), a record half-year performance, and a turnaround of almost AED 10 billion from its AED 5.7 billion (US$ 1.6 billion) loss for the same period last year.

The Group also reported an EBITDA of AED 15.3 billion (US$ 4.2 billion), a marked improvement from AED 5.6 billion (US$ 1.5 billion) during the same period last year, illustrating its strong operating profitability.

Group revenue was AED 56.3 billion (US$ 15.3 billion) for the first six months of 2022-23, up 128% from AED 24.7 billion (US$ 6.7 billion) last year. This was driven by the strong demand for air transport across the world with the further easing and removal of pandemic-related travel restrictions.

The Group closed the 1st half year of 2022-23 with a strong cash position of AED 32.6 billion (US$ 8.9 billion) on 30 September 2022, compared to AED 25.8 billion (US$ 7.0 billion), as on 31 March 2022. The Group has been able to tap on its own strong cash reserves to support business needs, including debt payments and pandemic-related commitments.

Emirates airline

Emirates continued to focus on restoring its global passenger network and connections through its Dubai hub, restarting services and adding flights to meet customer demand across markets.

In June, it launched services to Tel Aviv, a new destination. Expanding connectivity options for customers, Emirates launched codeshare and interline agreements with 12 airlines in the first six months of 2022-23: Airlink, AEGEAN, ITA Airways, Air Baltic, Air Canada, Bamboo Airways, Batik Air, Finnair, Royal Air Maroc, Sky Express, Sun Country Airlines, and United Airlines.

By 30 September, the airline was operating passenger and cargo services to 140 airports, utilizxing its entire Boeing 777 fleet and 73 Airbus A380s.

During the first six months of 2022-23, Emirates took delivery of 2 new Boeing 777 freighters and returned 1 older freighter from its fleet as part of its long-standing strategy to minimise its emissions footprint and operate modern, efficient aircraft. With new passenger aircraft only expected to arrive in 2024, Emirates this month began its multi-billion dollar programme to retrofit 120 aircraft with its latest cabin interiors and products.

Emirates continued to introduce new product and customer initiatives to deliver on its ‘fly better’ promise, including enhanced menus across all cabin classes, and the launch of a new hospitality programme to uplift service training and delivery. In August, Emirates launched its full Premium Economy experience to hugely positive, “booked-out” customer response on its flights to London, Paris and Sydney. Emirates plans to introduce its Premium Economy product on 5 more routes before the end of 2022-23, as more aircraft fitted with these popular seats roll out of its retrofit program.

Overall capacity during the first six months of the year increased by 40% to 22.8 billion Available Tonne Kilometres (ATKM) due to an expanded flight programme as more countries eased travel restrictions.  Capacity measured in Available Seat Kilometres (ASKM), increased by 123%, whilst passenger traffic carried measured in Revenue Passenger Kilometres (RPKM) was up by 265% with an average Passenger Seat Factor of 78.5%, compared with 47.9% during the same period last year.

Emirates carried 20.0 million passengers between 1 April and 30 September 2022, up 228% from the same period last year. Emirates Skycargo uplifted 936,000 tonnes in the first six months of the year, a 14% decrease compared to the same period last year, as the airline shifted capacity from its “mini-freighters” back to passenger operations.

Emirates profit for the first half of 2022-23 hit a new record of AED 4.0 billion (US$ 1.1 billion), compared to last year’s loss of AED 5.8 billion (US$ 1.6 billion). Despite an unfavourable currency exchange environment, Emirates revenue, including other operating income, of AED 50.1 billion (US$ 13.7 billion) was up 131% compared with the AED 21.7 billion (US$ 5.9 billion) recorded during the same period last year. The airline’s strong turnaround performance is driven by strong passenger demand for international travel across markets and shows the airline’s ability to plan ahead to meet the demand, activate capacity, and attract customers with its high-quality products and value proposition.

Emirates’ operating costs increased by 73% against an overall capacity growth of 40% mainly due to the substantial increase in fuel costs which more than tripled compared to the same period last year. This was primarily due to a 65% higher fuel uplift in line with increased flight operations, and the doubling of average oil prices during this period. Fuel, which was the largest component of the airline’s operating cost in pre-pandemic reporting cycles, accounted for 38% of operating costs, one of the highest ratios ever, compared to 20% in the first six months of last year.

Driven by strong demand and increased operations during the six months, Emirates’ EBITDA grew nearly three times to AED 14.7 billion (US$ 4.0 billion) compared to AED 5.0 billion (US$ 1.4 billion) for the same period last year.

Top Copyright Photo: Emirates Airline Airbus A380-861 A6-EEJ (msn 127) (Journey to the Future) CDG (Manuel Negrerie). Image: 958765.

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