The Emirates Group, one of the world’s leading aviation and travel conglomerates, announced today its best-ever six-month financial result, marking a remarkable rebound from the challenges posed by the COVID-19 pandemic.
This milestone comes approximately a year after the suspension of its flight operations in Nigeria, which was considered one of its key markets.
For the 2023-24 half-year period, the Emirates Group reported a net profit of AED 10.1 billion (US$ 2.7 billion), a staggering 138% increase from the previous year’s record half-year profit of AED 4.2 billion (US$ 1.2 billion).
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The impressive financial performance is attributed to strong operating profitability, reflected in the EBITDA of AED 20.6 billion (US$ 5.6 billion), up from AED 15.3 billion (US$ 4.2 billion) during the same period last year.
Revenue for the first half of 2023-24 stood at AED 67.3 billion (US$ 18.3 billion), a notable 20% surge from AED 56.3 billion (US$ 15.3 billion) recorded the previous year. This growth was primarily driven by the resurgent demand for air travel worldwide, following the easing of pandemic-related travel restrictions.
The Emirates Group maintained a robust cash position of AED 42.7 billion (US$ 11.6 billion) as of September 30, 2023, compared to AED 42.5 billion (US$ 11.6 billion) on March 31, 2023. Leveraging its strong cash reserves, the Group supported its business needs, including debt payments. To date, Emirates has successfully repaid AED 9.2 billion of its COVID-19-related loans. Additionally, the Group disbursed AED 4.5 billion in dividends to its owner at the conclusion of the 2022-23 financial year.
HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, expressed his satisfaction with the impressive performance, stating, “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.”
He credited the achievement to the dedication and talent within the organization, the resilience of the business model, and the visionary policies of Dubai that have fostered a robust aviation sector.
Looking ahead to the second half of 2023-24, Sheikh Ahmed highlighted the expectation of continued healthy demand across business divisions. However, he acknowledged potential challenges such as rising fuel prices, a strengthening US dollar, inflationary costs, and geopolitical factors, which the Group will carefully monitor.
To accommodate increased operations, the Emirates Group’s employee base grew by 6%, reaching a total of 108,996 as of September 30, 2023. Both Emirates and dnata are actively recruiting to meet future requirements.
Emirates Airlines, a flagship of the Emirates Group, expanded its global flight operations during the first half of 2023-24, restoring A380 operations to several destinations and launching daily non-stop services to Montreal, Canada. The airline also strengthened its connectivity options through codeshare and interline agreements with eight partner airlines.
Emirates operated passenger and cargo services to 144 airports, utilizing its entire Boeing 777 fleet and 104 A380s. The deployment of 10 retrofitted A380 aircraft with refreshed cabin interiors and Premium Economy services on select routes further enhanced the customer experience.
The airline achieved outstanding results, with a record profit of AED 9.4 billion (US$ 2.6 billion) for the first half of 2023-24, compared to AED 4.0 billion (US$ 1.1 billion) in the same period the previous year. Emirates’ revenue, including other operating income, totaled AED 59.5 billion (US$ 16.2 billion), a 19% increase from AED 50.1 billion (US$ 13.7 billion) in the corresponding period last year.
With ongoing challenges and increased operations, Emirates’ EBITDA surged by 33% to AED 19.5 billion (US$ 5.3 billion) during the first half of the year.
dnata, the Emirates Group’s ground handling, catering, retail, and travel services division, also reported strong revenue growth in the first half of 2023-24. The division’s notable achievements include significant new contracts in catering and airport services, strategic investments, and the implementation of innovative technology to enhance its operations.
dnata’s revenue, including other operating income, reached AED 9.3 billion (US$ 2.5 billion), up 27% from AED 7.3 billion (US$ 2.0 billion) in the same period last year. The division’s overall profit stood at AED 709 million (US$ 193 million), a substantial increase from AED 236 million (US$ 64 million) in the corresponding period the previous year.
dnata’s airport operations remained a key contributor to revenue, recording AED 4.1 billion (US$ 1.1 billion), an 18% increase. The division’s flight catering and retail operations contributed AED 3.5 billion (US$ 942 million) to revenue, up 45%. dnata’s travel division contributed AED 1.4 billion (US$ 375 million) to revenue, reflecting a 16% increase.
The Emirates Group’s exceptional performance in the first half of 2023-24 signals a strong recovery and underscores its resilience in the face of ongoing challenges in the global aviation and travel industry. Emirate Airlines suspended its operation in Nigeria due to its inability to repatriate earned funds running into $100 million.