Emirates group announced record profits in its 2022-23 annual report, along with a complete turnaround from its loss position last year.
Both Emirates and dnata saw significant revenue increases in 2022-23 as the group expanded its air transport and travel-related operations following the removal of nearly all pandemic-related restrictions around the world.
For the financial year ended 31 March 2023, the group posted a record profit of AED 10.9 billion (US$ 3.0 billion) compared with an AED 3.8 billion (US$ 1.0 billion) loss for last year. The group’s revenue was AED 119.8 billion (US$ 32.6 billion), an increase of 81% over last year’s results. The cash balance was AED 42.5 billion (US$ 11.6 billion), the highest ever reported, up 65% from last year mainly due to strong demand across its core business divisions and markets.
In 2022-23, the group collectively invested AED 7.2 billion (US$ 2.0 billion) in new aircraft, facilities, equipment, companies, and the latest technologies to position the business for future growth. The group is committed to a massive multi-billion dollar aircraft cabin retrofit programme; an order for 5 new 777 freighters; the building of a new pilot training centre; the opening of Bustanica, the world’s largest vertical farm in Dubai and dnata’s acquisition of 30% shares to gain full ownership of its ground handling operations in Brazil, among others.
Emirates’ total passenger and cargo capacity increased by 32% to 48.2 billion ATKMs in 2022-23, as the airline continued to reinstate passenger services across its network in line with the lifting of pandemic-related flight and travel restrictions. It signed new codeshare partners, most notably with United Airlines and Air Canada, expanding the airline’s connectivity in the Americas to over 200 new points.
With the removal of pandemic-related travel restrictions globally, the airline substantially improved its financial results and reported a record profit of AED 10.6 billion (US$ 2.9 billion) after last year’s AED 3.9 billion (US$ 1.1 billion) loss, and an exceptional profit margin of 9.9%, reflecting 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 reports a Passenger Seat Factor of 79.5%, compared with last year’s passenger seat factor of 58.6%; and 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.
With steady air freight demand throughout the year, Emirates’ cargo division reported revenue of AED 17.2 billion (US$ 4.7 billion). This was a 21% decline over last year’s exceptional performance caused by the pandemic. Freight yield per Freight Tonne Kilometre (FTKM) increased by 3% despite more cargo capacity returned to the global market, but generally remained at high levels compared to the pandemic marketplace due to steady and strong demand while tonnage carried declined by 14% to reach 1.8 million tonnes, due to the reduction in available freighter capacity for the entire year with the reinstatement of more passenger services.
Recovery from the pandemic was felt across almost all dnata businesses, and in 2022-23 dnata increased its profit by 201% to AED 331 million (US$ 90 million). With growing flight and travel activity across the world, dnata’s total revenue increased by 74% to AED 14.9 billion (US$ 4.1 billion). dnata’s international businesses account for 72% of its revenue, an increase of 10%pts from the previous year. Through the year, dnata worked closely with its customers through the challenges of labour shortages and rising inflation in its major markets such as UK, US, Europe and Australia.
Also published on Medium.
