Emirates, the Dubai-headquartered airline behemoth, today announced its annual results. Keeping in line with the global surge in travel, it is no surprise that it has been a profitable year for Emirates.
Emirates Group reports USD 3 Billion Profit.
The Emirates Group, which consists of Emirates and dnata (the ground handling company), posted a record profit for the financial year ended March 31, 2023, amounting to AED 10.9 billion (USD 3.0 billion), compared with an AED 3.8 billion (USD 1.0 billion) loss for immediately preceding year. The Group’s revenue was AED 119.8 billion (USD 32.6 billion), an increase of 81% over last year’s results. The Group’s cash balance was AED 42.5 billion (USD 11.6 billion), the highest ever reported, up 65% from last year, mainly due to strong demand across its core business divisions and markets.
Emirates reports USD 2.9 Billion Profit.
Emirates, which forms the most significant part of the business of the Emirates Group, had a strong resurgence. The airline reported its most profitable year ever, with a profit of AED 10.6 billion (USD 2.9 billion) compared with an AED 3.9 billion (USD 1.1 billion) loss in the prior year. Here are some highlights from the results which show how astounding the comeback has been:
- Revenue increased 81% to AED 107.4 billion (USD 29.3 billion) as the airline restored its global network and reinstated more passenger flights.
- Airline capacity increased by 32% to 48.2 billion ATKMs, with two new 777 freighter aircraft added to its fleet.
- A profit margin of 9.9% reflects the best performance in the airline’s history.
- Emirates carried 43.6 million passengers (up 123%) in 2022-23, with seat capacity up by 78%.
- The airline reported a Passenger Seat Factor of 79.5%, compared with last year’s passenger seat factor of 58.6%
- Emirates witnessed a 7% increase in passenger yield to 37.5 fils (10.2 US cents) per Revenue Passenger Kilometre (RPKM) due to a change in cabin and route mix, fares and currency.
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 March 31, 2023, the Emirates network comprised 150 destinations across six continents, including nine cities served by its freighter fleet only. Emirates also deployed its flagship A380 aircraft to even more cities during the year, bringing its A380 network to 43 destinations as of 31 March 2023.
In 2022-23, the Group collectively invested AED 7.2 billion (USD 2.0 billion) in new aircraft, facilities, equipment, companies, and the latest technologies to position the business for future growth. These include a massive multi-billion dollar aircraft cabin retrofit programme; an order for five new 777 freighters; the building of a new pilot training centre; the opening of Bustanica, the world’s largest vertical farm in Dubai, under a partnership with CropOne; new training aircraft for its cadets at Emirates Flight Training Academy; dnata’s acquisition of 30% shares to gain full ownership of its ground handling operations in Brazil; and the building of a new advanced cargo facility in Erbil, Iraq.
The Emirates Group declared a dividend of AED 4.5 billion (USD 1.2 billion) to its owner ICD, Investment Corporation of Dubai, and repaid AED 3.0 billion (USD 817 million) of debt raised during the COVID-19 crisis, partly ahead of maturity. The airline has also announced a 24-week profit share for pilots.
Emirates has reported a record USD 2.9 billion profit for the financial year 2022-23. The airline has bounced back and responded to the growth of travel and profited from it very well. The airline has repaid its debt ahead of time and is now sitting on a record cash balance, which should help power its growth in the future.
What do you think of Emirates’ 2022-2023 financial results?
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