The Emirates Group has reported its most profitable year ever, with a record profit of US$ 3.0 billion for the financial year ending March 31, 2023. This is a significant turnaround from the previous year’s US$ 1.0 billion loss. The group’s revenue increased by 81% to US$ 32.6 billion. This growth was driven by strong customer demand worldwide as almost all travel restrictions were removed.
Emirates, the airline arm of the group, has restored its global network and reinstated more passenger flights. This has resulted in an 81% increase in revenue to US$ 29.3 billion. Emirates’ capacity also increased by 32% to 48.2 billion ATKMs, with two new 777 freighter aircraft added to its fleet.
Meanwhile, dnata, the group’s ground handling and catering arm, reported a profit of US$ 90 million. This is compared to the profit of US$ 30 million the previous year. Its revenue has also increased by 74% to US$ 4.1 billion. It reflects the ongoing pandemic recovery across all business divisions in the UAE and worldwide. The group’s ground handling and catering arm expanded its global footprint by launching operations in Zanzibar, Tanzania. They started new cargo operations in Germany and Canada, and acquired full ownership of ground handling operations in Brazil.
The Emirates Group ended the year with its highest-ever cash balance of US$ 11.6 billion, up 65% from the previous year. The group has declared a dividend of US$ 1.2 billion to its owner, Investment Corporation of Dubai (ICD). It also repaid US$ 817 million of debt raised during the COVID-19 crisis, partly ahead of maturity.
Progressive Policies
The chairman credited the group’s record performance and ongoing success to the leadership of HH Sheikh Mohammed bin Rashid Al Maktoum and Dubai’s progressive policies. The group’s strong financial results demonstrate the resilience and agility of its business model, which is well-positioned to capitalize on the ongoing recovery in the global travel industry.
The airline received two new 777 freighter aircraft, while retiring four older planes, including two A380s, one Boeing 777-300ER, and one Freighter.
As of the end of March 2023, Emirates’ total fleet count was 260 units, with an average age of just 9.1 years, making it one of the youngest fleets in the industry. The airline remains committed to operating modern and efficient aircraft, which it sees as an essential element of its “Fly Better” brand promise. This strategy has driven its order book to 200 aircraft, including five additional Boeing 777-300ER freighter orders announced during the 2022-23 financial year.
Emirates believes that a young and modern fleet is not only better for the environment but also better for its operations and customers. Its unwavering focus on this approach has been a key factor in its success, and the airline intends to maintain this strategy going forward.
