Dubai: Emirates Group announces highest-ever profit at Dh10.9 billion

Company revenue of Dh119.8 billion increased by 81% with strong customer demand worldwide post-pandemic

A Staff Reporter

Published: Thu 11 May 2023, 12:15 PM

Last updated: Thu 11 May 2023, 12:57 PM

Emirates Group has reported its most profitable year ever with a record annual profit of Dh10.9 billion ($3.0 billion). This is a significant turnaround since its loss-making position last year. Releasing its 2022-23 annual report, the company saw huge growth in almost every sector.

The group revenue of Dh119.8 billion ($32.6 billion) increased by 81% with strong customer demand worldwide with almost all travel restrictions removed.

Both Emirates and dnata saw significant revenue increases in 2022-23 as the group expanded its air transport and travel-related operations following the removal of nearly all pandemic-related restrictions around the world.

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For the financial year that ended 31 March 2023, the Emirates Group posted a record profit of Dh10.9 billion ($3.0 billion) compared with an Dh3.8 billion ($1.0 billion) loss for last year. The Group’s cash balance was Dh42.5 billion ($11.6 billion), the highest ever reported, up 65% from last year mainly due to strong demand across its core business divisions and markets.

"We’re proud of our 2022-23 performance which is not only a full recovery, but also a record result,” said Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group. “I’m proud of our contribution to the restoration of air transport and tourism across the markets we serve, including Dubai’s astounding 97% year-on-year growth in international visitors for 2022. The Group is the biggest player in the UAE’s aviation sector, which supports over 770,000 jobs and generates an estimated contribution to GDP of over Dh172.5 billion ($47 billion)."

Sheikh Ahmed credited His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai for the group’s success and said the achievement would not have been possible without his leadership. “The architect of Dubai’s progressive economic policies, HH Sheikh Mohammed is also the engine behind the Emirates Group’s trajectory,” he said. “Without his drive and support, Emirates will be half the size of what we are today.”

With these figures, the company repaid Dh3 billion ($817 million) more of the total Dh17.5 billion (US$ 4.8 billion) of debt raised during Covid-19 crisis, partly ahead of maturity. This continues to strengthen the confidence of its financing partners in its business model and allowed Emirates to reprice Dh4.5 billion ($1.2 billion) of debt during this financial year and further raise Dh1.2 billion to finance the acquisition of two new B777 freighter aircraft through an Islamic finance lease at highly effective margins.

Impressive numbers

Emirates’ total passenger and cargo capacity increased by 32% to 48.2 billion ATKMs in 2022-23, as the airline continued to reinstate passenger services across its network in line with the lifting of pandemic-related flight and travel restrictions. It carried 43.6 million passengers (up 123%) in 2022-23, with seat capacity up by 78%.

In addition to launching services to Tel Aviv, Emirates relaunched flights to six destinations and increased operations to 62 cities across its network throughout the year to serve strong customer demand. By 31 March 2023, the Emirates network comprised 150 destinations across six continents, including 9 cities served by its freighter fleet only.

Recovery from the pandemic was felt across almost all dnata businesses, and in 2022-23 dnata increased its profit by 201% to Dh331 million ($90 million).

With growing flight and travel activity across the world, dnata's total revenue increased by 74% to Dh14.9 billion ($4.1 billion). dnata’s international businesses account for 72% of its revenue, an increase of 10% from the previous year. Through the year, dnata worked closely with its customers through the challenges of labour shortages and rising inflation in its major markets such as UK, US, Europe and Australia.

Commitment to Environment

The Emirates Group also continued to work on its commitment to the environment and sustainability. On Thursday, the group announced that it has committed $200 million to fund research and development (R&D) projects focused on reducing the impact of fossil fuels in commercial aviation. It is the biggest single commitment by any airline on sustainability, with funds to be disbursed over 3 years.

It signed up to the United Nations Global Compact, a voluntary initiative where Emirates and dnata will work towards making the UN Sustainable Development Goals (SDGs) and Principles part of their strategy, culture, and operations. The Group also signed the UAE Gender Balance Council’s pledge to increase female representation at mid-senior management positions to 30% across the country by 2025.

Amongst its numerous environmental initiatives, a key highlight for Emirates was the successful conduct of a demonstration flight with 930 sustainable aviation fuel (SAF) in one engine of a Boeing 777. This first-in-region initiative contributes to collective industry data and efforts to enable a future of 930 SAF flying. dnata in 2022-23 pledged to invest US$ 100 million (Dh367 million) over 2 years, to improve environmental efficiency across its global business, supporting its goal to reduce its carbon footprint by 50% by 2030.

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