Emirates Group Reports Record-Breaking Half-Year Results for 2024-25

Photo : Dubai Government Media Office

The Emirates Group has announced a remarkable half-year financial performance for the first six months of the 2024-25 financial year. The company posted a profit before tax of AED 10.4 billion (US$ 2.8 billion), surpassing its record from the same period last year. This marks a significant achievement for the company, especially considering it is the first year that the UAE’s corporate income tax, which was introduced in 2023, has been applied to the Group’s finances. After accounting for the 9% corporate income tax charge, the Group’s profit after tax stands at AED 9.3 billion (US$ 2.5 billion).

The Group demonstrated a strong operating performance, maintaining an impressive EBITDA of AED 20.4 billion (US$ 5.6 billion), although slightly lower than the AED 20.6 billion (US$ 5.6 billion) reported during the same period last year. Emirates Group’s overall revenue for the first half of 2024-25 rose by 5%, reaching AED 70.8 billion (US$ 19.3 billion), up from AED 67.3 billion (US$ 18.3 billion) in the previous year. This growth in revenue reflects the consistently high customer demand across various business divisions and regions. As of 30 September 2024, the Group’s cash reserves stood at AED 43.7 billion (US$ 11.9 billion), a slight decrease from AED 47.1 billion (US$ 12.8 billion) on 31 March 2024. The Group utilized its strong cash position to support its business needs, including payments for new freighter aircraft and debt obligations, while also distributing a AED 2 billion dividend to its owner.

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and the Group, expressed pride in the Group’s exceptional performance. He noted that the results illustrate the effectiveness of the Group’s business model in synergy with Dubai’s growth as a global hub for business, tourism, and living. Sheikh Ahmed emphasized that the Group’s robust profitability would enable it to continue making substantial investments in customer products, advanced technologies, and employee welfare to support future growth. He further highlighted that the outlook for the rest of 2024-25 remains positive, with plans to increase capacity and expand services as new aircraft and facilities come online.

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In line with expanding operations, the Emirates Group’s workforce grew by 3%, reaching 114,610 employees as of 30 September 2024. Both Emirates and dnata continue to recruit new staff to meet the future needs of the business.

Emirates Airline has expanded its network, increasing the number of scheduled flights to eight cities: Amsterdam, Cebu, Clark, Luanda, Lyon, Madrid, Manila, and Singapore, and reopening routes to Phnom Penh, Cambodia, and Bogotá, Colombia. The airline also launched a new route to Madagascar via Seychelles in September 2024. Through these efforts, Emirates expanded its global reach, taking its network to 148 airports across 80 countries. Additionally, Emirates strengthened partnerships with seven new interline, codeshare, and intermodal partners, including AirPeace, Avianca, ITA Airways, and Iceland Air, among others.

As part of its fleet modernization program, Emirates continued with its US$ 4 billion retrofit initiative, completing the interior refurbishment of eight aircraft, including three A380s and five Boeing 777s. These retrofitted aircraft, featuring upgraded cabins and new amenities such as lie-flat Business Class seats with personal minibars, began service in select cities. By the end of the year, Emirates will have deployed over 30 routes with its newly retrofitted A380 and Boeing 777 aircraft, offering an upgraded experience for passengers.

On the ground, Emirates invested AED 44 million in the opening of new Emirates Lounges for premium passengers at London Stansted and Jeddah airports, while also refurbishing the existing lounge at Paris Charles De Gaulle. The airline continued to innovate with the launch of its first travel store outside the UAE in Hong Kong and plans to expand this retail concept further. Emirates is also advancing its environmental initiatives, including the adoption of Sustainable Aviation Fuel (SAF) in Singapore and London Heathrow and participation in the Aviation Initiative for Renewable Energy (aireg) in Germany.

The airline’s strong performance also extended to its cargo division. Emirates SkyCargo transported 1.2 million tonnes of cargo, up 16% compared to the same period last year. This was driven by strong demand, particularly from Chinese e-commerce and shipments bound for Dubai. Emirates SkyCargo also continued to grow its fleet of freighters, receiving one Boeing 777 freighter and leasing two additional Boeing 747 freighters, and placing an order for 10 more Boeing 777 freighters.

In terms of financial results, Emirates reported a profit before tax of AED 9.7 billion (US$ 2.6 billion) for the first half of 2024-25, compared to AED 9.5 billion (US$ 2.6 billion) for the same period last year. Revenue for the airline was AED 62.2 billion (US$ 16.9 billion), a 5% increase from AED 59.5 billion (US$ 16.2 billion) in the prior year. Emirates continued to experience high demand in both travel and air cargo, which contributed significantly to its revenue growth. Direct operating costs, particularly fuel, rose by 6%, accounting for 32% of total operating expenses, slightly down from 34% in the previous year.

Meanwhile, dnata, the Group’s ground services division, also reported strong growth. In the first half of 2024-25, dnata’s revenue increased by 11% to AED 10.4 billion (US$ 2.8 billion), compared to AED 9.3 billion (US$ 2.5 billion) in the previous year. However, its profit before tax was slightly lower at AED 720 million (US$ 196 million), down 5% primarily due to a one-off impairment charge. dnata’s airport operations contributed the largest portion of its revenue, with AED 4.8 billion (US$ 1.3 billion), marking a 15% increase, while its catering and retail division saw an 8% increase in revenue, and the travel division grew by 23%.

Dnata has been expanding its presence globally, including new ground handling operations at Raleigh-Durham International Airport in the United States and the expansion of cargo handling capacity in Zurich. The company is also progressing with its sustainability efforts, including converting its airside vehicles and ground support equipment in the UAE to biodiesel and increasing the number of electric vehicles in its operations in Brazil and the UAE.

The Emirates Group’s robust financial performance reflects its continued success across various sectors, driven by strong customer demand, strategic investments, and a focus on sustainability and innovation. As it heads into the second half of 2024-25, the Group remains optimistic about maintaining its growth trajectory and expanding its services and infrastructure globally.

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