Emirates Group reports record profits of US$6.2 billion

The Emirates Group reported an 18 percent growth in profit before tax exceeding US$6.2 billion (Dh22.7 billion) – a new record – in the financial year 2024-25.

This is the first financial year that the UAE corporate tax, enacted in 2023, is applied to the Emirates Group. After accounting for the 9 percent tax charge, the Group’s profit after tax reached US$5.6 billion (Dh20.5 billion).

The world’s largest international aviation group also recorded annual revenue of US$39.6 billion (Dh145.4 billion) which is 6 percent higher than the previous financial year.

Emirates Group, which includes the world’s largest international career Emirates Airline and its ground handling and ticketing arm Dnata – has also declared Dh6 billion dividends to its shareholder – the Government of Dubai – through Investment Corporation of Dubai (ICD).

Emirates Group also reported a record level of cash assets at US$ 14.6 billion (Dh53.4 billion), up 13 percent from last year while it also reported the highest-ever Earnings before Interest, Tax, Debt and Amortisation (EBITDA) of US$11.5 billion (Dh42.2 billion), which is up 6 percent, demonstrating its strong operating profitability.

Emirates Airline reported a 20 percent jump in profit before tax of US$5.8 billion (Dh21.2 billion) on record revenue of US$34.9 billion (Dh127.9 billion), for 2024-25 financial year, an increase of 6 percent over last year.

The airline currently has highest-ever level of cash assets at US$13.5 billion (Dh49.7 billion), which is 16 percent higher compared to 31 March 2024.

Emirates Group’s ground handling and ticketing arm Dnata delivered record profit before tax of US$430 million (Dh1.6 billion), up 2 percent from last year on record revenue of US$ 5.8 billion (Dh21.1 billion), up 10 percent.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group said: “It is no accident that Dubai has produced hugely successful global aviation entities including Emirates and dnata. Dubai’s aviation sector has become an influential force on the global stage thanks to visionary leaders, strategic planning, co-ordinated execution, and strong support from our customers, business partners, and all the people of Dubai.

“When the government set up Emirates 40 years ago and we began expanding Dnata’s capabilities to support the city’s growth, we had a clear mission – be the best at what we do; and deliver value to Dubai, our stakeholders, and the communities we serve.”

Sheikh Ahmed added: “For 2024-25, the Emirates Group has raised the bar to set new records for profit, revenue, and cash assets. Through the year, Emirates and Dnata were able to move quickly to meet the strong demand for air transport services across markets and win over customers – thanks to our non-stop investments in our people, in building partnerships, and in delivering great products and services.”

In 2024-25, the Group collectively invested US$3.8 billion (Dh14.0 billion) in new aircraft, facilities, equipment, companies, and the latest technologies to support its growth plans.

The Group’s total workforce grew by 9 percent to 121,223 employees, its largest size ever, as Emirates and Dnata continued recruitment activity around the world to support its expanding operations and boost its future capabilities.

Commenting on the outlook for 2025-26, Sheikh Ahmed said: “We enter the year ahead with excitement and optimism. Our excellent financial standing enables us to continue building on and scaling up from our successful business models. While some markets are jittery about trade and travel restrictions, volatility is not new in our industry. We simply adapt and navigate around these challenges.

“Emirates will strengthen our network connectivity with the expected delivery of 16 A350s and 4 Boeing 777 freighters in 2025-26, providing much-needed capacity to meet customer demand. Our retrofit programme will continue apace to provide our customers the latest Emirates products and a more consistent experience across our A380, 777 and A350 fleet.

“Work is already underway at the new Al Maktoum International airport (DWC) and broader development around Dubai South. Our planning teams are working closely with Dubai airports and other entities to design and deliver the future of aviation and the best possible travel experiences.

“We’ve set high targets for ourselves, but I am confident that our talented workforce and Dubai’s winning formula will empower the Emirates Group to forge an even brighter future, and deliver even more value to the people, cities and communities we serve.”

Emirates Airline

Emirates’ total passenger and cargo capacity grew 4 percent to 60.0 billion ATKMs in 2024-25, recovering to near pre-pandemic levels.

During the year, Emirates launched two new destinations – Bogotá and Madagascar; restarted flights to Phnom Penh, Lagos, Adelaide and Edinburgh; and strengthened services to 21 other destinations to meet rising demand. By 31 March, Emirates served 148 cities in 80 countries and territories. Emirates also grew its partnerships to 33 codeshare and 118 interline partners, providing customers smooth access to over 1,750 cities beyond its network.

“One of the key benefits of operating an airline in the Gulf is that you don’t have to deal with trade unions or labour unions – so the airlines could keep the operating costs low through its own salary and remuneration packages as no one is there to question those,” said an aviation expert, requesting anonymity.

“Having said that, Emirate’s employee packages are higher compared to other private sector businesses. Other than that, it is perhaps the best managed airline group in the world and the results are a testament to this.”

The first Airbus A350 aircraft joined Emirates’ fleet this year, bringing added capacity for the airline to serve customer demand with its latest products, including the popular Premium Economy Class and a new-generation inflight entertainment system. By 31 March, Emirates had 4 A350s in its fleet flying to Edinburgh, Ahmedabad, Bahrain, Colombo, Kuwait and Mumbai.

With ongoing delays in new aircraft deliveries, Emirates added 99 more aircraft to its retrofit programme which will now see 219 aircraft go through a full cabin refresh at a total investment of US$ 5.0 billion. At 31 March, Emirates’ order book had 314 aircraft pending delivery, including 61 A350s, 205 Boeing 777x, 35 787s, and 13 777Fs.

Total fleet count at the end of March was 260 units, with an average fleet age of 10.7 years.

By strategically deploying capacity to serve surging demand across markets, Emirates’ total revenue for the financial year increased 6 percent to US$ 34.9 billion (Dh127.9 billion). Currency fluctuations and devaluations in some of the airline’s major markets negatively impacted the airline’s profitability by Dh718 million (US$196 million).

Emirates saw a record operating cash flow of Dh40.8 billion (US$11.1 billion) in 2024-25, which reflects its strong commercial performance and enables the airline to grow the business going forward.

Total operating costs increased by 4 percent from last financial year. Fuel and employee cost were the airline’s two biggest cost components in 2024-25, followed by cost of ownership (depreciation and amortisation). Fuel accounted for 31 percent of operating costs compared to 34 percent in 2023-24. The airline’s fuel bill decreased slightly to Dh32.6 billion (US$8.9 billion) compared to Dh34.2 billion (US$9.3 billion) the previous year, as lower average fuel price (down 10 percent) including hedging gains offset a higher uplift of 5 percent from increased flying.

With robust appetite for travel across customer segments, the strength of its global network, and strong customer preference for its products, Emirates hit a new record profit after tax of Dh19.1 billion (US$5.2 billion), outstripping last year’s Dh17.2 billion (US$4.7 billion) result with an exceptional profit margin of 14.9 percent. This is the best performance in the airline’s history and in the airline industry for the reporting year 2024-25.

Emirates carried 53.7 million passengers (up 3 percent) in 2024-25, with seat capacity up by 4 percent. The airline reports a Passenger Seat Factor of 78.9 percent, a marginal decline from 79.9 percent last year. Passenger yield remained consistent at 36.6 fils (10.0 US cents) per Revenue Passenger Kilometre (RPKM).

Emirates continued to invest in delivering ever better customer experiences. In addition to a range of inflight service enhancements in 2024-25, Emirates invested Dh63 million in its lounge product, opening two new lounges at London Stansted and Jeddah to bring the total number of dedicated Emirates Lounges globally to 41; and renovated existing facilities in Bangkok and Paris. This is part of a long-standing strategy to provide premium customers with signature experiences at key stations across the network, not only at its hub. The airline also launched its Emirates Chauffeur-Drive Service to Riyadh, expanding this signature service to over 70 cities.

Emirates SkyCargo delivered an outstanding year, carrying 2.3 million tonnes of goods around the world, up 7 percent from the previous year as the delivery of 2 new Boeing 777 freighters and 2 wet-leased 747 freighters unlocked capacity to serve surging demand for air transport.

Ably navigating the ongoing challenges in global logistics, the cargo division reported a solid revenue of Dh16.1 billion (US$4.4 billion), contributing 13 percent to Emirates’ total revenue.

Emirates placed orders for 10 more Boeing 777Fs, a significant investment to strengthen its cargo division’s position at the centre of global trade and logistics. Emirates SkyCargo has 13 freighters on order and expects to operate a fleet of 21 freighters by December 2026.

At the end of March, Emirates’ SkyCargo’s total freighter fleet stood at 10 Boeing 777Fs.

Under Emirates Group companies and subsidiaries, Emirates Flight Catering (EKFC) and MMI/Emirates Leisure Retail (ELR) reported notable results in 2024-25.

EKFC grew revenue from external customers by 11 percent to Dh1.1 billion (US$293 million), uplifting 15.4 million meals during 2024-25 for its 114 airline customers in Dubai. It committed Dh160 million to expand Linencraft’s facility to handle 400 tonnes of laundry per day by 2026, cementing its place as the region’s leading laundry services provider. EKFC also launched its gourmet B2C offering, Foodcraft, to consumers in the UAE.

MMI/ELR posted solid results with revenue growing 6 percent to Dh3.1 billion (US$847 million). During the year, both businesses saw strong customer demand across their portfolio, and extended their footprint with F&B and retail stores opening in 22 new locations, including MMI’s first retail outlet in Sri Lanka.

With a strong cash balance and operating cash flow, Emirates fully met all contracted obligations during 2024-25, including aircraft pre-delivery payments and financing liabilities as they become due, utilising our cash reserves which stood at Dh49.7 billion as of 31 March.

Emirates also fully repaid its US$750 million Corporate Bond which was issued in 2013 with a 12-year term. Listed on the Irish Stock Exchange, this bond was the first senior unsecured amortising bond issued by an airline, and the airline’s diligence in honouring the payment schedule further enhances its credit worthiness in global financial markets.

During the year, Emirates continued to deploy simple forward contracts to hedge against Brent crude oil and refining margins; and used long-term interest rate hedges to mitigate the impact of interest rate fluctuations. With significant currency exposure due to its global presence, Emirates continued to manage foreign exchange rate risk through currency options, forward contracts, and natural hedges. Its systematic approach improved cash flow predictability against volatile market shifts, reinforcing financial stability. In 2024-25, the airline’s risk management programme generated savings of Dh1.1 billion (US$287 million).

Dnata

Dnata increased its profit before tax by 2 percent to Dh1.6 billion (US$430 million) in 2024-25, with all business divisions reporting a solid performance, and notable contributions from its airport operations and catering and retail divisions.

Dnata’s total revenue increased by 10 percent to hit a new record of Dh21.1 billion (US$5.8 billion), driven by increased flight and travel activity across the world, particularly in its major markets: Australia, Europe, the UAE, UK, and US.

Dnata’s international businesses account for 75 percent of its revenue, unchanged from the previous year.

Expanding its capabilities and capacity to meet customer needs and its future growth ambitions, Dnata’s investments in 2024-25 amounted to Dh579 million (US$ 158 million). Significant investments during the year included: new electric and hybrid ground support equipment for its airport operations as part of its environmental strategy, new catering facilities in Australia, and new cargo facilities in the UAE.

In 2024-25, Dnata’s operating costs increased by 10 percent to Dh19.7 billion (US$5.4 billion), in line with expanded operations in its Airport Operations, Catering & Retail, and Travel divisions.

Dnata’s cash balance declined by Dh468 million to Dh3.7 billion (US$1.0 billion), primarily due to dividend payments to its owner, ICD; plus the funding of investments and debt repayments. The business saw a positive operating cash flow of Dh2.7 billion (US$735 million) in 2024-25, reflecting the substantial improvements in revenue.

Revenue from Dnata’s Airport Operations, including ground and cargo handling increased to Dh9.9 billion (US$2.7 billion).

Key customer wins in 2024-25 include: long-term contracts secured with Etihad Airways and British Airways in the USA; and the long-term extension of an agreement for dnata to manage Jordan Flight Catering Company Ltd which delivers world-class culinary services to over 30 airlines in Amman.

Revenue from Dnata’s Travel Services division grew by 11 prcent to Dh3.9 billion (US$1.1 billion), with strong contributions from its UK travel business and Imagine Cruising, its cruise holidays business.