FY 2022-23: Dubai's Emirates records $1.2bn in half-year net profit
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FY 2022-23: Dubai’s Emirates records $1.2bn in half-year net profit

FY 2022-23: Dubai’s Emirates records $1.2bn in half-year net profit

The group’s revenue stood at $15.3bn for the first six months of 2022-23, up 128 per cent from $6.7bn last year

FY 2022-23: Dubai's Emirates records $1.2bn in half-year net profit

Dubai-based Emirates Group swung to profit in the first half of the current financial year.

The group recorded a half year net profit of Dhs4.2bn ($1.2bn) for FY 2022-23, up from a Dhs5.7bn ($1.6bn) loss during the same period last year. Its EBITDA reached Dhs15.3bn ($ 4.2bn), up from Dhs5.6bn ($1.5bn) during a year-earlier period.

The group posted Dhs56.3bn ($15.3bn) in revenue  for the first six months of 2022-23, up 128 per cent year-on-year from Dhs24.7bn ($ 6.7bn), driven by demand for air transport globally with the further easing and removal of pandemic-related travel restrictions, the carrier said in a statement.

The group held a cash position of Dhs32.6bn ($8.9bn) as on September 30, 2022, compared to Dhs25.8bn ($7bn), as on March 31, 2022.

“The group’s record performance for the first six months of 2022-23 is the result of forward planning, agile business response, and the efforts of our talented and committed workforce,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group.

“Across the group, our operations recovery accelerated as more countries eased and removed travel restrictions. For the coming months, we remain focused on restoring our operations to pre-pandemic levels and recruiting the right skills for our current and future requirements.

“We expect customer demand across our business divisions to remain strong in H2 2022-23. However, the horizon is not without headwinds, and we are keeping a close watch on inflationary costs and other macro-challenges such as the strong US dollar and the fiscal policies of major markets. The group expects to return to our track record of profitability at the close of our full financial year,” he added.

The group’s employees totaled 93,893 as of September 30, scaling 10 per cent compared to March 31, 2022.

Emirates airline
Emirates profit for the first half of 2022-23 hit Dhs4bn ($1.1bn), compared to last year’s loss of Dhs5.8bn ($1.6bn).

Meanwhile, its revenue, including other operating income, totalled Dhs50.1bn ($13.7bn), up 131 per cent year-on-year compared to Dhs21.7bn ($5.9bn).

Emirates’ operating costs increased by 73 per cent against an overall capacity growth of 40 per cent, due to the substantial increase in fuel costs, the statement added.

Fuel, which was the largest component of the airline’s operating cost in pre-pandemic reporting cycles, accounted for 38 per cent of operating costs compared to 20 per cent in the first six months of last year. Its EBITDA trebled to Dhs14.7bn ($4bn) compared to Dhs5bn ($1.4bn) for the same period last year.,

The carrier restarted services and added flights to meet customer demand across markets in the first six months of 2022-23. In June, it introduced services to Tel Aviv in Israel.

Read: Dubai’s Emirates takes off to Tel Aviv, marks airline’s first passenger flight to Israel

It also launched codeshare and interline agreements with 12 airlines namely Airlink, Aegean, ITA Airways, Air Baltic, Air Canada, Bamboo Airways, Batik Air, Finnair, Royal Air Maroc, Sky Express, Sun Country Airlines, and United Airlines.

Read: Dubai’s Emirates, United ink agreement to expand market presence, enhance networks

Read: Emirates and Greek carrier Aegean Airlines sign codeshare partnership

By September 30, the airline was operating passenger and cargo services to 140 airports.

During the first six months of 2022-23, Emirates also received two new Boeing 777 freighters and returned one older freighter from its fleet. Additionally, the carrier commenced its programme to retrofit 120 aircraft with its latest cabin interiors and products this month.

Read: UAE’s Emirates to commence largest known fleet retrofit project in November

In August, Emirates also launched its full Premium Economy experience on its flights to London, Paris and Sydney and plans to unveil it on five more routes before the end of 2022-23.

Overall capacity during the first six months of the year increased by 40 per cent to 22.8 billion available tonne kilometres (ATKM). Capacity measured in available seat kilometres (ASKM), increased by 123 per cent, whilst passenger traffic carried measured in revenue passenger kilometres (RPKM) was up by 265 per cent with an average passenger seat factor of 78.5 per cent.

Emirates carried 20 million passengers between April 1 and September 30, 2022, up 228 per cent from the same period last year. Meanwhile, Emirates Skycargo uplifted 936,000 tonnes in the first six months of the year, posting a 14 per cent year-on-year decrease.

dnata’s revenue, which included other operating income, totalled Dhs7.3bn ($2bn), doubling from Dhs3.7bn ($1bn) reported last year. Its profit reached Dhs236m ($64m), compared to last year’s Dhs85m ($23m).

dnata’s airport operations remains the largest contributor to revenue with Dhs3.5bn ($944m), reflecting a 37 per cent increase as compared to the same period last year, as customer demand continued to pick up particularly in its UAE, US, Italy and UK businesses, the statement said.

Its flight catering and retail operations contributed Dhs2.4bn ($651m) to its revenue, up 212 per cent, while the number of meals uplifted increased by 204 per cent to 50.5 million meals after last year’s 16.6 million.

dnata’s travel division contributed Dhs1.2bn ($323m) to revenue, up 708 per cent compared to Dhs147m ($40m) for the same period last year, driven largely by the strong recovery of travel demand and bookings in its Middle East and UK businesses.

In the first half of 2022-23, dnata grew its footprint with new concession contracts to provide services in Zanzibar (dnata airport operations), and Ras Al Khaimah (Alpha Catering). Its airport operations division entered the German market with the acquisition of Wisskirchen Handling Services and acquired the remaining 30 per cent stake to assume full ownership of its ground handling business in Brazil.

Meanwhile, dnata also committed $100m to implement green technology and initiatives across its business, and invested $17m into its operations in Erbil, Iraq.

Read: Dubai’s dnata to invest $100m in green operations in next two years

Read: Dubai’s dnata invests over $17m to boost Erbil operations

Also read: Dubai’s Emirates will ‘go profitable’ during 2022-23

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