Emirates expects to return to profitability again in its full financial year 2022-2023, reporting strong results in the first six months. It is seeing continued strong customer demand in the second half year, although inflation, the strong US dollar, and other ‘macro-challenges’ will have an impact on the full-year result. Emirates on track for full-year profit.
Emirates reported a consolidated profit for Emirates Airline and dnata of AED 4.2 billion, up from AED -5.7 billion in the same March-September period of 2021 that was heavily impacted by Covid restrictions across its network and operations. EBITDA was AED 15.3 billion, up from AED 5.6 billion. Group revenues soared to AED 56.3 billion from AED 24.7 billion.
Emirates Airline produced a net profit of AED 4.0 billion versus AED -5.8 billion last year, clearly leaving the losses behind it. EBITDA was AED 14.7 billion compared to AED 5.0 billion. Revenues increased to AED 50.1 billion, up from AED 21.7 billion.
Headwinds were unfavorable currency exchanges and operating costs up 73 percent year on year. Fuel costs more than tripled, which can be attributed 65 percent to a higher fuel uplift thanks to operating at forty percent higher capacity/(available tonne kilometers to 22.8 billion kilometers. Fuel costs accounted for 38 percent of all operating costs. The airline carried twenty million passengers at a passenger seat factor of 78.5 percent versus 47.9 percent last year. SkyCargo carried fourteen percent less cargo (936K tonnes) as it reduced its cargo-only services and flew more freight in the belly hold.
Including eleven freighters, Emirates had all its 140 Boeing 777-300ERs back in service by the end of September and 73 Airbus A380s out of 119. The carrier started its extensive cabin retrofit program in November, with the first of 67 A380s coming in to receive Premium Economy class and updated upholstery. This program will take until 2024 when 53 777s will follow.
Ground handler, caterer, retailer, and travel service provider dnata benefitted from the recovery of air travel, reporting an AED 236 million profit compared to AED 85 million last year. Airport operations across the world remain the largest contributor to revenues, which grew to AED 7.3 billion from AED 3.7 billion for all its activities.
Following two years of losses, Emirates “expects to return to our track record of profitability at the close of our full financial year,” said Chairman, Sheikh Ahmed bin Saeed Al Maktoum. “For the coming months, we remain focussed 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 airline ended September with AED 32.6 billion in cash, up from AED 25.8 billion in March.
