DUBAI, United Arab Emirates — Emirates Group reported its highest-ever half-year results, a net profit of 10.1 billion dirhams ($2.75 billion) for 2023-24 on the back of rebounding demand.
- IMPORTANT NOTES
- Strong demand for foreign travel drove the profit beat, as the industry continues to recover from the Covid-19 outbreak.
- The six-month earnings number was 138% more than the company’s half-year profit in 2022.
The figure was 138% higher than the previous year’s half-year profit of 4.2 billion dirhams. Strong demand for foreign travel drove the profit beat, as the industry continues to recover from the Covid-19 outbreak. The group’s six-month revenue was 67.3 billion dirhams, a 20% increase over the previous year’s total. Emirates Group, the state-owned Dubai-based holding company, also announced earnings before interest, taxes, depreciation, and amortization (EBITDA) of 20.6 billion dirhams, up from 15.3 billion dirhams in the same quarter last year. It reported a cash balance of 42.7 billion dirhams.
“The Group has been able to tap into its own strong cash reserves to support business needs, including debt payments,” the company’s earnings statement said, adding that Emirates has reimbursed 9.2 billion dirhams of its Covid-19 related loans and the group has paid 4.5 billion dirhams in dividend to its owner, which was declared at the end of the fiscal year 2022-23.
Sheikh Ahmed bin Saeed al Maktoum, Chairman and CEO of Emirates, stated in an accompanying statement, “We are seeing the fruition of our plans to return stronger and better from the dark days of the pandemic.” The Group has outperformed earlier expectations to deliver our best-ever half-year result.” He also stated that the group’s profit for the first six months of the fiscal year 2023-2024 has “nearly matched our record full-year profit in 2022–23.”
“For the second half of 2023-24, we expect customer demand across our business divisions to remain healthy and we will stay agile in how we deploy our resources in this dynamic marketplace,” Al Maktoum stated in a press release. “At the same time, we are keeping a close watch on headwinds such as rising fuel prices, the strengthening US dollar, inflationary costs, and geo-politics.”
Frequently asked questions
What does Emirates Group own?
The Emirates Group owns 68.7% of Dubai-based Maritime and Mercantile International, 34.4% of Oman United Agencies, and 54.7% of Emirates Flight Catering. At Dubai International Airport, Emirates Flight Catering is the exclusive provider of airline and airport catering services.
Who is CEO of Emirates Airlines?
His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline & Group
How is Emirates profitable?
Due to lower operating costs at its Dubai base, several industry observers believe the airline is second only to Ryanair in terms of cash cost per seat. This allows it to profitably service secondary destinations by connecting them through its global hub in Dubai.
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