MENA Newswire News Desk: The Emirates Group has announced a record-breaking financial performance for the first half of the 2024-25 fiscal year, reporting a profit before tax of AED10.4 billion (US$2.8 billion). This marks a notable increase from last year, with profits after accounting for a new 9% corporate income tax at AED9.3 billion (US$2.5 billion).
This growth reflects robust operational performance across Emirates Airline and its service arm, dnata, driven by high demand for both passenger travel and cargo services. The Group’s revenue rose to AED70.8 billion (US$19.3 billion), a 5% increase from AED67.3 billion (US$18.3 billion) in the same period last year. This growth is attributed to sustained demand across global markets and business divisions.
The Emirates Group maintained an EBITDA of AED20.4 billion (US$5.6 billion), demonstrating strong underlying profitability despite slight year-over-year declines in margin. As of September 30, 2024, Emirates reported a cash balance of AED43.7 billion (US$11.9 billion), down from AED47.1 billion (US$12.8 billion) at the end of March. This decrease reflects strategic investments, including payments for new aircraft, debt obligations, and a dividend payout of AED2 billion to its owner at the close of the 2023-24 fiscal year.
Emirates Chairman and CEO, Sheikh Ahmed bin Saeed Al Maktoum, attributed the record performance to the Group’s resilient business model and Dubai’s favorable growth environment, highlighting ongoing investments to enhance customer service and operational capabilities. Emirates Airline has significantly expanded its network, adding new routes and increasing flight frequencies to destinations such as Amsterdam, Cebu, and Singapore.
It also reintroduced daily flights to Phnom Penh and launched routes to Bogotá and Madagascar, bringing its total network to 148 airports across 80 countries as of September 30, 2024. Additionally, Emirates entered new partnerships with seven codeshare, interline, and intermodal partners, including AirPeace, Avianca, BLADE, ITA Airways, Iceland Air, SNCF Railway, and Viva Aerobus, expanding connectivity options for customers.
Under its fleet enhancement program, Emirates rolled out eight aircraft (three A380s and five Boeing 777s) with updated interiors as part of a $4 billion retrofit initiative. These refurbished aircraft include new cabin configurations, such as the 1-2-1 Business Class layout with lie-flat seats and Premium Economy seating. The first retrofitted Boeing 777 debuted on routes to Geneva, Tokyo Haneda, and Brussels, with further deployment planned to destinations like Riyadh, Zurich, and Miami-Bogotá.
Emirates has also invested in ground facilities to elevate the customer experience. Recent investments include AED44 million for new Emirates Lounges at London Stansted and Jeddah airports, alongside a revamped lounge at Paris Charles De Gaulle. Emirates also introduced a new concept travel store in Hong Kong, part of its expanding retail strategy.
In line with sustainability goals, Emirates continued to incorporate sustainable aviation fuel (SAF) in Singapore and London operations and joined the Aviation Initiative for Renewable Energy in Germany (aireg). It also partnered with the Aviation Impact Accelerator (AIA) at the University of Cambridge to explore emissions reduction pathways, funded by a disbursement from its $200 million sustainability fund.
Emirates has increased its brand presence globally, securing a new sponsorship as Official Airline Partner of The Championships – Wimbledon, and extending agreements with the International Cricket Council (ICC) and Portugal’s SL Benfica football club.
In the cargo sector, Emirates SkyCargo reported a 16% increase in transported volume, supported by rising eCommerce shipments and growth in Dubai-bound cargo. Emirates SkyCargo expanded its capacity with a new Boeing 777 freighter and additional wet-leased 747Fs, while placing orders for 10 more freighters to meet future demand. The increased volume and high demand led to an 11% rise in cargo yields.
Overall, Emirates achieved a record profit before tax of AED9.7 billion (US$2.6 billion), with revenue reaching AED62.2 billion (US$16.9 billion), driven by strong passenger and cargo demand. Emirates’ operational costs, especially fuel, rose in line with expanded operations, with fuel accounting for 32% of the airline’s costs.
During the same period, dnata recorded revenue of AED10.4 billion (US$2.8 billion), up 11% year-over-year. While dnata’s profit before tax decreased slightly to AED720 million (US$196 million) due to a one-off impairment charge, EBITDA grew by 16% to AED1.3 billion (US$354 million), underscoring its stable performance across airport services and catering sectors.