The Emirates Group today announced its results for the first half of the 2022-2023 fiscal year. The Group announced net profit in the first half of 2022-2023 of AED 4.2 billion (US＄ 1.2 billion), a record half-year performance and recovery from loss of almost AED 10 billion from its AED 5.7 billion (US＄ 1.6 billion) recorded in the same period last year.
The Group also announced EBITDA of AED 15.3 billion (US＄ 4.2 billion), a great improvement over the AED 5.6 billion (US＄ 1.5 billion) recorded in the same period last year, showing its strong operating profitability.
A revenue revenue was AED 56.3 billion (US＄ 15.3 billion) in the first six months of 2022-2023, an increase of 128% from last year's revenue of AED 24,7 billion (US＄ 6.7 billion). This increase is a result of strong demand for air travel around the world following the easing and removal of pandemic-related travel restrictions.
The Group ended the 1st half of the 2022-2023 fiscal year with a strong cash position of AED 32.6 billion (US＄ 8.9 billion) as at 30 September 2022, compared to cash position of AED 25,8 billion (US＄ 7.0 billion ) on March 31, 2022. The Group has used its strong cash reserves to meet business needs, including debt payments and pandemic-related commitments.
His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and CEO of Emirates Airline and Emirates Group, She said: "The Group's record performance in the first six months of the 2022-2023 fiscal year is the result of planning, agile business response and the dedication of our talented and committed employees."
“Across the Group, the recovery of our operations accelerated with the easing and removal of travel restrictions in countries. We were ready and among the first to meet strong customer demand, thanks to our robust business plans, the of our industry partners and our continued investments in people, technology, products and services.”
“For the coming months, we remain focused on restoring our operations to pre-pandemic levels and recruiting talent with the right skills to meet our current and future requirements. We expect customer demand from our business units to remain strong in the second half of the 2022-2023 fiscal year. However, the horizon is not free of adverse situations; therefore, we are closely monitoring the inflationary costs and other challenges, such as the strengthening of the dollar and the fiscal policies of the main markets.” Sheikh Ahmed added: “The Group expects to resume its track record of profitability at the end of the full fiscal year.”
Accompanying the increase in capacity and business activities, the Emirates Group employee base increased by 10% compared to March 31, 2022, totaling 93.893 employees as of September 30, 2022. Emirates and dnata have also started recruitment campaigns for specific jobs, which will meet future requirements.
Emirates Airline
Emirates remained focused on restoring its global enger and connection network through its Dubai hub, restarting services and adding flights to meet customer demand across all markets.
In June, Emirates launched flights to Tel Aviv, a new destination on its network. Expanding connectivity options for customers, Emirates entered into codeshare and interline agreements with 12 airlines in the first six months of the 2022-2023 fiscal year: Airlink, AEGEAN, ITA Airways, Air Baltic, Air Canada, Bamboo Airways, Batik Air, Finnair, Royal Air Maroc, Sky Express, Sun Country Airlines and United Airlines.
As of the close of the first half of the 2022-2023 fiscal year, the airline operated enger and cargo flights to 140 airports, using its entire fleet of Boeing 777 aircraft and 73 A380 aircraft.
During the first six months of the 2022-2023 fiscal year, Emirates took delivery of two new Boeing 777 Freighters and returned an old Freighter from its fleet as part of its strategy to minimize emissions and operate modern and efficient aircraft.
With new enger aircraft not expected to arrive until 2024, Emirates this month started its multibillion-dollar program to retrofit 120 aircraft and include the latest interiors and cabin products.
Emirates unveiled new products and initiatives for customers delivering on its promise to “fly better”, including enhanced menus across all cabin classes and the launch of a new hospitality program to enhance training and service delivery.
In August, Emirates launched its full Economy experience and saw overwhelmingly positive response from “select” customers on flights to London, Paris and Sydney. Emirates plans to launch its Economy product on five additional routes before the end of the 2022-2023 fiscal year, as aircraft refurbished and equipped with these popular seats in its modernization program become ready.
A general ability during the first six months of the fiscal year it increased by 40% and reached 22.8 billion available ton cargo kilometers (ATKM), due to the expansion of the flight program resulting from the easing of travel restrictions in several other countries.
A capacity, measured in available seat kilometers (ASKM), increased by 123%, while the enger traffic transported measured in paying enger kilometers (RPKM) increased by 265%, with average enger occupancy rate of 78.5%, compared to 47.9% in the same period last year.
Emirates transported 20 million engers between April 1 and September 30, 2022, an increase of 228% over the same period last year. Emirates Skycargo transported 936.000 tonnes of cargo in the first half of the fiscal year, which represents a reduction of 14% compared to the same period last year, as the airline transferred the capacity of its “mini freighters” back to enger aircraft.
O profit of Emirates in the first half of 2022-2023 reached a new record of AED 4 billion (US＄ 1.1 billion), compared to last year's loss of AED 5,8 billion (US＄ 1.6 billion). Despite the unfavorable exchange rate, the revenue of Emirates, including other operating income, of AED 50.1 billion (US＄13.7 billion) increased by 131% compared to revenue of AED 21,7 billion (US＄5.9 billion) recorded in the same period last year.
The good performance of the airline's turnaround is driven by strong enger demand for international travel in all markets and shows the airline's ability to plan to meet demand, adjust capacity and attract customers with its high quality products and proposition. of value.
Emirates' operating costs increased by 73% against overall capacity growth of 40%, mainly due to the substantial increase in fuel costs, which were more than three times higher than the same period last year. This is primarily due to the 65% fuel increase due to increased flight operations and the average oil price which has doubled during this period.
Fuel, which was the airline's biggest operating cost in pre-pandemic reporting, ed for 38% of operating costs, one of the highest ever, compared to 20% in the first six months of last year.
Driven by strong demand and increased operations in the first half of the fiscal year, the Emirates' EBITDA grew almost threefold and reached AED 14.7 billion (US＄4 billion) versus AED 5,0 billion (US＄1.4 billion) in the same period last year.
DNA
Due to increased air and enger traffic across all markets, dnata's Cargo Handling Services, Catering Services and Retail Sales and Travel Services businesses saw a significant increase in operations.
This brought strong revenue growth in the first six months of 2022-2023; however, dnata's overall performance was affected by inflation and rising costs in the markets where it operates.
In the first half of 2022-2023, dnata increased its presence with new long-term 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, exclusive operator of the Cologne Bonn Cargo Centre; and acquired the remaining 30% of the ground services company in Brazil, thereby assuming full ownership of this business.
Ensuring its future readiness to provide secure, high-quality services to its customers, dnata has committed US＄100 million to implement green technology and initiatives across its business and has invested US＄17 million into its operations in Erbil, Iraq, including a state-of-the-art facility for refrigerated products, a bus maintenance facility and a cargo depot.
A revenue of dnata including other operating income of AED 7.3 billion (US＄2 billion) doubled compared to revenue of AED 3,7 billion (US＄1 billion) generated in the same period last year.
O overall profit of dnata in the period was AED 236 million (US＄ 64 million) compared to profit of AED 85 million (US＄ 23 million) recorded in the same period last year.
As dnata airport operations continue to generate most of the revenue; in this period these operations generated AED 3.5 billion (US＄944 million), an increase of 37% compared to the same period last year, considering the increase in demand from customers mainly in the UAE, United States, Italy and the United Kingdom. In all its operations, the number of aircraft receiving dnata's services increased by 56% and reached 347,581, handling 1.4 million tons of cargo, with a slight decrease of 2%, reflecting the airlines' focus on enger operations.
As dnata flight dining and retail operations contributed AED 2.4 billion (US＄651 million) to revenue, up 212% with strong production increases in Australia, UK and US to meet customer demand. The number of meals increased considerably by 204%, reaching 50.5 million meals, compared to 16.6 million meals recorded last year.
A dnata travel division contributed AED 1.2 billion (US＄323 million) to revenue, an increase of 708% from the AED 147 million (US＄40 million) recorded in the same period last year. This increase was largely driven by the strong recovery in demand for travel and bookings at its Middle East and UK locations.
This division posted total transaction value sales of AED 4.7 billion (US＄1.3 billion) versus AED 726 million (US＄198 million) in the same period last year.
