Emirates Group Reports Record US$3bn Annual Profit

DALLAS – The Emirates Group has reported its most profitable year in its 2022-23 Annual Report, with an impressive turnaround from its loss position the previous year.

Both Emirates Airlines (EK), the largest airline in the Middle East, and the Dubai National Air Travel Agency (dnata), which provides ground-handling services at 126 airports, experienced significant revenue increases as the Group expanded its air transport and travel-related operations due to the lifting of pandemic-related restrictions worldwide.

Record Revenue, Profit

The Group has reported a new profit and revenue record, with an annual profit of AED10.9bn (US$3.0bn), a significant turnaround from last year. The strong customer demand worldwide with almost all travel restrictions removed has contributed to a Group revenue of AED119.8bn (US$32.6 bn) which increased by 81%.

The airline group ends the year with the highest-ever cash balance of AED42.5bn (US$ 11.6bn) and has declared a dividend of AED4.5bn (US$1.2bn) to its owner ICD, Investment Corporation of Dubai. The Group has also repaid AED3.0bn (US$817m) of debt raised during the COVID-19 crisis, partly ahead of maturity.

Emirates reported its most profitable year ever with a profit of AED10.6bn (US$2.9bn) compared with AED 3.9bn (US$ 1.1bn) loss in the previous year. The airline's revenue was up 81% to AED 107.4bn (US$ 29.3bn) as it restored its global network and reinstated more passenger flights.

Meanwhile, dnata reported a profit of AED331m (US$90m), solid growth from its AED110m (US$30m) profit last year, with a revenue increase of 74% to AED14.9bn (US$4.1bn), reflecting the ongoing pandemic recovery across all business divisions in the UAE and worldwide.

Finally, the Group expanded its global footprint with the launch of operations in Zanzibar, Tanzania; new cargo operations in Germany and Canada, and acquiring full ownership of ground handling operations in Brazil.

Bottom Line

In summary, the Group has achieved a significant turnaround from last year with a new profit and revenue record, driven by strong customer demand worldwide with almost all travel restrictions removed. EK reported its most profitable year ever, and dnata also experienced solid growth.

The Group also declared a dividend to its owner and repaid debt raised during the COVID-19 crisis. In addition, the Group expanded its global footprint with new operations and acquisitions. Overall, it has been a successful year for the aviation holding company.

Garhoud, Dubai-based EK is one of two flag carriers of the United Arab Emirates. The airline is a subsidiary of The Emirates Group, which is owned by the government of Dubai's Investment Corporation of Dubai.

Emirates Airlines flies to over 150 destinations across six continents, operating a fleet of over 250 wide-bodied aircraft.

Featured image: A6-EUG Emirates Airbus A380-800 KLAX LAX. Photo: Brandon Farris/Airways