The Emirates Group announced today its best half-year financial results ever for the fiscal year 2024/2025, as it recorded pre-tax profits amounting to 10.4 billion dirhams ($2.8 billion), exceeding its record pre-tax profits in the same period last year.
This fiscal year is the first in which the corporate income tax in the United Arab Emirates, which was approved in 2023, is applied to the Emirates Group. After taking into account the 9% tax, the group recorded profits of 9.3 billion dirhams ($2.5 billion).
The group also recorded earnings before interest, taxes, depreciation and amortization of 20.4 billion dirhams ($5.6 billion), compared to 20.6 billion dirhams ($5.6 billion), during the same period last year, a slight decrease that reflects the group’s strong operating profitability.
The group’s revenues amounted to 70.8 billion dirhams ($19.3 billion) during the first six months of the fiscal year 2024/25, a growth of 5% compared to 67.3 billion dirhams ($18.3 billion) for the same period last year, and this reflects the continued strong demand from customers across the country. Various group works.
The group ended the first half of the fiscal year 2024/2025 with a strong cash position, with its balances reaching 43.7 billion dirhams ($11.9 billion) on September 30, 2024, compared to 47.1 billion dirhams ($12.8 billion) on March 31, 2024. The group was able to leverage its strong cash reserves to support business needs, including paying installments for orders to purchase new cargo aircraft and repaying other debts. The group also paid 2 billion dirhams to the owners’ share, as announced at the end of the financial year 2023/2024.
His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and CEO of Emirates Airline and Group, said: “The Emirates Group was once again able to exceed its record financial results last year, to record strong half-year results in this financial year, which embodies the strength of our business model, which is consistent with the growth path in the country.” Dubai as a preferred city to live, work, visit and do business.”
His Highness added: “The group enjoys strong profitability that will enable us to make the necessary investments to continue our successes, as we invest billions of dollars to introduce new products and services to the market for our customers; apply advanced technologies and other innovation projects aimed at driving growth; and take care of our employees, making every effort to ensure the safety of our customers.” And their satisfaction.”
His Highness concluded: “Customer demand is expected to remain strong during the second half of the current fiscal year 2024/2025, and we look forward to enhancing our ability to maximize revenues with the addition of new aircraft to the Emirates fleet and the operation of new facilities at dnata. Future expectations remain promising, but we We will not rest on our current achievements, and will remain ready to respond quickly and direct our resources flexibly according to fluctuating market requirements.”
To keep pace with the expansion of operations and commercial activities, the Emirates Group’s employee base, compared to March 31, 2024, has grown by 3%, bringing the total number of employees to 114,610 employees as of September 30, 2024. Emirates and dnata continue to organize recruitment campaigns to support future requirements. .
Emirates Airlines
Emirates Airlines continued to enhance its global operations, adding more capacity and connectivity through its hub in Dubai to meet customer demand in its markets. During the first half of 2024/2025, it increased the number of its flights to 8 cities: Amsterdam, Cebu, Clark, Luanda, Leon, Madrid, Manila and Singapore.
In May, Emirates Airlines resumed its daily flights to Phnom Penh, Cambodia via Singapore. In June, it launched a daily service to Bogotá via Miami, strengthening its presence in South America via Colombia. In September, Emirates launched a new route to Madagascar via Seychelles, and by September 30, Emirates was operating passenger and cargo flights to 148 airports in 80 countries.
To expand the travel options available to customers, in the first six months of 2024/2025, Emirates has entered into codeshare, interline and multimodal transport partnerships with 7 partners: Air Peace, Avianca, Blade, ITA Airways, Icelandair and National Airlines. French Railways and Viva Aerobus.
During the period between April 1 and September 30, 8 aircraft (3 Airbus A380s and 5 Boeing 777s) were fully modernized as part of its $4 billion aircraft modernization program. This has allowed Emirates to offer the latest cabin products, including its latest 4-class Boeing 777 aircraft, which features a 1-2-1 layout for lie-flat seats with a personal minibar in Business Class, in addition to the addition of Premium Economy Class. .
The first updated Boeing 777 aircraft took off for Geneva in August, followed by Tokyo Haneda and Brussels. Over the next six months, and with the renewal of more aircraft, Emirates Airlines revealed 10 other routes for its updated Boeing 777 aircraft: Riyadh, Zurich. , Kuwait, Dammam, Chicago, Boston, Dallas-Fort Worth, Seattle, Newark-Athens and Miami-Bogota.
By the end of the year, Emirates’ latest A380 and Boeing 777 experiences, including Premium Economy Class, will be available to customers on more than 30 routes.
Emirates Airlines invested 44 million dirhams to open new lounges for first and business class customers at London Stansted and Jeddah airports, and to modernize its lounge at Charles de Gaulle Airport in Paris. This forms part of an ongoing multi-million dollar program to enhance Emirates’ lounge network. In July, Emirates opened a new travel store in Hong Kong, its first outside the UAE, and plans to launch more stores around its network as part of its retail strategy.
Emirates Airlines has also continued to advance its environmental initiatives, by promoting the use of sustainable aviation fuel wherever available and possible. During the first six months of the 2024/25 financial year, the carrier began using sustainable aviation fuel for the first time at Singapore and London Heathrow Airport.
Emirates Airlines has joined the German Initiative for Renewable Energy in Aviation (aireg), and has also become an industrial partner of the Accelerating Aviation Impact Reduction (AIA) initiative, which is led by the Whittle Laboratory at the University of Cambridge. This partnership represents the first investment from the Emirates Airline Sustainability Fund, worth $200 million, allocated to projects… Research and development focused on developing sustainability solutions in aviation.
Emirates Airlines has strengthened its investments in strengthening its global brand presence during the first half of the fiscal year 2024/2025, as it signed a new sponsorship agreement to become the official partner of the Wimbledon Championship, and also extended its long-term partnerships with the International Cricket Council for another 8 years, and with SL Benfica. Portuguese football for another 5 years.
During the first six months of the financial year, the total capacity recorded a growth of 5% to reach 29.9 billion available ton kilometers (ATKM) due to the expansion of flight operations. Passenger capacity, measured by the number of available seats multiplied by the number of kilometers traveled (ASKM), increased by 4%, while passenger traffic, measured by return per passenger kilometer (RPKM), increased by 2%, while the seat adequacy rate reached 80.0%, compared to 81.5% during the same period last year. Emirates Airlines transported 26.9 million passengers during the period between April 1 and September 30, 2024, an increase of 3% over the same period last year.
Emirates Sky Cargo transported 1.198 million tons during the first six months of the current fiscal year, a growth of 16% compared to the same period last year, as the strong e-commerce movement from China and the increase in shipments heading to Dubai contributed significantly to this growth.
Emirates SkyCargo was able to meet the demand thanks to the additional capacity it obtained from the new Boeing 777 freighter aircraft, and two additional Boeing 747F freighter aircraft. During the first six months of the current financial year, Emirates Airlines placed orders to purchase 10 additional Boeing 777 freighter aircraft to support its growth.
Cargo revenues increased by 11% thanks to strong customer demand for the specialized products provided by Emirates SkyCargo and its excellent network of freighter and passenger aircraft.
In the first half of the fiscal year 2024/2025, Emirates Airlines achieved record profits before tax of 9.7 billion dirhams ($2.6 billion), compared to 9.5 billion dirhams ($2.6 billion) for the same period last year. Emirates’ profits after calculating The tax is 8.7 billion dirhams ($2.4 billion).
Emirates Airlines’ revenues, including other operating income, recorded 62.2 billion dirhams ($16.9 billion), a growth of 5% compared to 59.5 billion dirhams ($16.2 billion) during the same period of the last fiscal year. This record growth in revenues is attributed to the continued strong demand for travel and air cargo across various markets, and the carrier’s ability to provide valuable offers and high-quality services to customers.
Emirates’ direct operating costs (including fuel) increased by 6% in line with the expansion of operations. Fuel remains the largest component of the tanker’s operational cost (32%) compared to about 34% in the same period of the last fiscal year.
Thanks to customer demand and increased operations during the six months, EBITDA remained very strong, reaching AED 19.1 billion (US$ 5.2 billion), although slightly down by 2% compared to AED 19.5 billion (US$ 5.3 billion). billion US dollars) in the same period last year.
Thanks to strong customer demand and the expansion of operations over the first half of the current financial year, Emirates Airlines’ operating profits before deducting interest, taxes, depreciation and amortization remained strong to record 19.1 billion dirhams ($5.2 billion), despite a slight decrease of 2% over the same period. The period from the last fiscal year, which was 19.5 billion dirhams ($5.3 billion).
dnata
dnata recorded strong revenue growth during the first six months of the 2024/25 financial year, driven by strengthening its operations in the shipping, ground handling, catering, retail and travel services sectors.
In the first half of the 2024/25 financial year, dnata Catering and Airport Services won several important new contracts, and grew its existing customer base across its international operations. This confirms dnata’s ability to meet the diverse requirements of its airline customers with high safety standards and high-quality products and services.
dnata also continued its strategic investments in its business to respond to customer needs and capitalize on market prospects. The most notable developments in the first half of the current fiscal year included expanding its presence in the United States with the launch of ground handling operations at Raleigh-Durham International Airport; Signing major deals for new ground support equipment (GSE) with a total value estimated at more than $210 million over its lifespan; and a planned 50% increase in cargo handling capacity in Zurich, Switzerland, with increased warehouse capacity.
Dnata has also continued to advance its environmental agenda to reduce emissions, through investments to convert its entire fleet of non-electric vehicles and ground support equipment in the UAE to biodiesel, and adding more electric ground support equipment to its operations in Brazil and the UAE.
Dnata’s revenues, including income from other operations, increased by 11% to record 10.4 billion dirhams ($2.8 billion), compared to 9.3 billion dirhams ($2.5 billion) during the same period of the last fiscal year.
Dnata’s total pre-tax profits amounted to AED 720 million ($196 million), a 5% decrease compared to the same period of the previous financial year, primarily due to a one-time impairment charge of AED 152 million. Dnata’s profits after tax amounted to 571 million dirhams ($156 million).
Dnata showed its operating profitability, as its earnings before deducting interest, taxes, depreciation and amortization amounted to 1.3 billion dirhams ($354 million), a growth of 16% compared to 1.1 billion dirhams ($305 million) in the first six months of the last fiscal year.
Dnata Airport Operations maintained its position as the largest contributor to dnata’s revenues, as this contribution amounted to 4.8 billion dirhams ($1.3 billion), a growth of 15% over the revenues of the first six months of the last fiscal year, thanks to the continued growth in customer demand, especially in Australia and Singapore. The United Arab Emirates and the United Kingdom. The total number of aircraft for which dnata provided handling services at all its operating locations increased by 2% to 391,365 aircraft, and the cargo it handled recorded 1.5 million tons, an increase of 18% over the same period last year, thanks to the strong demand for air freight services in the world.
The contribution of dnata’s aircraft catering and retail operations to total revenues amounted to 3.7 billion dirhams ($1.0 billion), with a growth of 8%, supported by increased production in both Australia and the United Kingdom to meet customer demand, in addition to the growth of its products in the retail sector as part of its strategy, in addition to the positive impact of modifying Contracts to cover higher supply costs. The number of meals carried on planes during the first six months decreased by 5% to 62.7 million meals, compared to 66.3 million meals in the same period of the last fiscal year.
Dnata’s travel division contributed 1.8 billion dirhams ($483 million) in revenue, a growth of 23% compared to 1.4 billion dirhams ($391 million) in the same period of the last fiscal year, with a strong contribution from the Destination Asia business. , Imagine Cruising, and Middle East Corporate Travel. The division recorded sales with a total basic value of TTV transactions amounting to 4.5 billion dirhams ($1.2 billion), compared to 4.1 billion dirhams ($1.1 billion) in the same period of the last fiscal year.
1 The corporate tax in the United Arab Emirates began to be applied to the Emirates Group, starting from the fiscal year 2024/2025. Therefore, the net income after tax figures for September 2024 and September 2023 are not directly comparable.