The Emirates Group has achieved its best-ever financial performance for the first half of 2024-25. The company posted a profit before tax of Dhs 10.4 billion (US$ 2.8 billion), surpassing last year’s record for the same period.
For the first time, the Emirates Group has applied the UAE’s new corporate income tax, introduced in 2023. After accounting for the 9% tax, the Group’s profit after tax is Dhs 9.3 billion (US$ 2.5 billion).
Emirates Strong Revenue Growth
The Group’s revenue for the first half of 2024-25 was Dhs 70.8 billion (US$ 19.3 billion), a 5% increase compared to Dhs 67.3 billion (US$ 18.3 billion) last year. This reflects strong customer demand across all business sectors and regions.
Healthy Cash Position
As of 30 September 2024, the Group maintained a solid cash position of Dhs 43.7 billion (US$ 11.9 billion), slightly lower than the Dhs 47.1 billion (US$ 12.8 billion) reported at the end of March 2024. This reserve has supported business needs, including aircraft purchases and debt payments. Additionally, the Group paid a Dhs 2 billion dividend to its owner for the 2023-24 financial year.
HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and CEO of Emirates Airline and Group, stated: “The Group has exceeded its record performance from last year, showing the strength of our business model and Dubai’s position as a key global hub. Our strong profits allow us to invest in new products, advanced technologies, and our dedicated workforce.”
He added, “We expect strong customer demand to continue for the rest of the year. We will focus on increasing our capacity with new aircraft and enhanced facilities at dnata.”
Jobs at Emirates
To support its growing operations, the Emirates Group’s workforce increased by 3%, reaching 114,610 employees as of 30 September 2024. Both Emirates and dnata are actively recruiting to meet future demands.
Emirates Airline
Network Expansion
Emirates continued to grow its network during the first half of 2024-25, adding flights to eight cities, including Amsterdam, Madrid, Manila, and Singapore. New routes launched included Phnom Penh, Bogotá, and Madagascar, bringing the airline’s global network to 148 airports in 80 countries.
Aircraft Upgrades
The airline completed the retrofit of 8 aircraft, including 3 A380s and 5 Boeing 777s, as part of its US$ 4 billion cabin upgrade program. Emirates introduced new cabin features, including lie-flat seats in Business Class and a new Premium Economy.
Airport Investments
Emirates invested Dhs 44 million in new lounges at London Stansted and Jeddah airports, along with refurbishments in Paris. The airline also opened its first travel store outside the UAE in Hong Kong.
Sustainability Efforts
Emirates has begun using sustainable aviation fuel (SAF) at key airports such as Singapore and London Heathrow. The airline also joined industry initiatives focused on reducing emissions and invested in research for more sustainable aviation technologies.
Passenger and Cargo Growth
Emirates carried 26.9 million passengers in the first half of 2024-25, up 3% from last year. Emirates SkyCargo transported 1.2 million tonnes of cargo, a 16% increase.
Emirates’ total revenue for the first half of 2024-25 reached Dhs 62.2 billion (US$ 16.9 billion), a 5% increase. Profit before tax was Dhs 9.7 billion (US$ 2.6 billion), and profit after tax was Dhs 8.7 billion (US$ 2.4 billion).
dnata
Growth Across Operations
dnata saw significant growth in its cargo, ground handling, catering, and travel services during the first half of 2024-25. It secured several new contracts and expanded its operations internationally, including launching new ground handling services in Raleigh-Durham, USA.
Environmental Initiatives
dnata continued its environmental efforts, transitioning airside vehicles in the UAE to biodiesel and expanding its fleet of electric ground support equipment (GSE) in the UAE and Brazil.
Revenue and Profit
dnata’s revenue increased by 11% to Dhs 10.4 billion (US$ 2.8 billion), driven by strong performance in airport services and catering. However, profit before tax decreased slightly by 5% to Dhs 720 million (US$ 196 million), mainly due to a one-time impairment charge.
Operating Profitability
Despite the slight decrease in profit, dnata’s EBITDA grew by 16% to Dhs 1.3 billion (US$ 354 million). The airport services division was the largest contributor to dnata’s revenue, with Dhs 4.8 billion (US$ 1.3 billion).
tanvir@dubainewsweek.com
