Tuesday, May 28, 2024

Emirates Group nets record $5bn profit for Q1; revenue up 15pc

The Emirates Group (May 13) recorded solid quarterly results hitting new record profit of AED18.7 billion ($5.1 billion), up 71 percent compared to last year’s figures of AED10.9 billion ($3 billion) as well as robust revenue growth and cash balance levels.

Releasing its 2023-24 Annual Report, the group said both Emirates and dnata saw significant profit and revenue increases in 2023-24, as the group expanded its operations around the world to meet strong customer demand for its high-quality products and services.

For the financial year ended March 31, 2024, the Emirates Group said its revenue soared to AED137.3 billion ($37.4 billion), up 15 percent over last year’s results. The Group’s cash balance was AED47.1 billion ($12.8 billion), the highest ever reported, up 11 percent from last year.

Combined Group profits for the last 2 years, at AED29.6 billion, surpass pandemic losses of AED25.9 billion during 2020-2022.

On the solid performance, Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group, said: “We have once again raised the bar to deliver a new record performance. Throughout the year, we saw high demand for air transport and travel related services around the world, and because we were able to move quickly to deliver what customers want, we achieved tremendous results.”

“We are reaping the benefit of years of non-stop investments in our products and services, in building strong partnerships, and in the capabilities of our talented people,” he noted.

Sheikh Ahmed pointed out that the group’s excellent financial standing today places it in a strong position for future growth and success. “It enables us to invest to deliver even better products, services, and more value to our customers and stakeholders,” he stated.

“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,” he added.

On the future outlook, Sheikh Ahmed said: “Looking further ahead, the Dubai government has announced plans to start the next phase of expansion at Al Maktoum International Airport, which will eventually be the new hub for Emirates and dnata’s operations. This AED128 billion ($35 billion) investment will significantly expand and enhance Dubai’s aviation and logistics infrastructure, supporting the city’s growth, and Emirates’ and dnata’s growth.”

Emirates’ total passenger and cargo capacity increased by 20 percent to 57.7 billion ATKMs in 2023-24, recovering to near pre-pandemic levels, he stated.

The airline hit a new record profit of AED17.2 billion ($4.7 billion) exceeding last year’s AED10.6 billion ($2.9 billion) result, with an exceptional profit margin of 14.2 percent, marking it the best performance in the airline’s history.

According to him, Emirates carried 51.9 million passengers (up 19 percent) in 2023-24, with seat capacity up by 21 percent.

The cargo division too reported a solid revenue of AED13.6 billion ($3.7 billion), contributing 11 percent to the airline’s total revenue.

Emirates closed the financial year with its highest-ever level of cash assets at AED42.9 billion ($11.7 billion), 15 percent higher compared to 31st March 2023.

On dnata, the Dubai airline said it had increased its profit by 330 percent to AED1.4 billion ($387 million) in 2023-24, reporting solid results across its business divisions.  Its total revenue increased by 29 percent to hit a new record of AED19.2 billion ($5.2 billion), driven by increased flight and travel activity across the world, it added.

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