Emirates Group Reports Record AED 9.3 Billion Profit After Tax For First Half Of Financial Year 2024-25

The Emirates Group reported its highest-ever half-year financial results, achieving a pre-tax profit of AED10.4 billion (US$ 2.8 billion) for the first half of 2024-25. This surpasses last year's record for the same period. The UAE corporate income tax, introduced in 2023, was applied for the first time this year, resulting in a post-tax profit of AED9.3 billion (US$2.5 billion).

Emirates' revenue increased by 5% to AED62.2 billion (US$ 16.9 billion), driven by strong travel and cargo demand. Operating costs rose by 6%, with fuel remaining the largest expense at 32%. Despite these costs, Emirates maintained an EBITDA of AED19.1 billion (US$ 5.2 billion), slightly down from last year's AED19.5 billion (US$ 5.3 billion).

The Emirates Group ended the first half of 2024-25 with a cash reserve of AED43.7 billion (US$ 11.9 billion) as of September 30, 2024, down from AED47.1 billion (US$ 12.8 billion) on March 31, 2024. The Group utilised its reserves to support business needs, including new freighter aircraft orders and debt payments, while also distributing AED2 billion in dividends.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, stated: "The Group has surpassed its record performance of last year to deliver a fantastic result for the first half of 2024-25." He highlighted investments in new products and services and advanced technologies to ensure continued success.

Emirates expanded its network during the first half of 2024-25 by increasing flights to eight cities including Amsterdam and Singapore. It also launched new routes like daily services to Bogotá via Miami and Madagascar via Seychelles, reaching a total of 148 airports across 80 countries by September's end.

To enhance customer connectivity, Emirates entered into agreements with seven new partners such as AirPeace and Avianca during this period. Additionally, eight aircraft with refreshed interiors were rolled out under a US$4 billion retrofit programme.

Environmental Initiatives and Brand Visibility

Emirates advanced its environmental efforts by using sustainable aviation fuel (SAF) in Singapore and London Heathrow for the first time during this period. It joined Germany's aireg initiative and partnered with Cambridge University's Aviation Impact Accelerator to research emissions reduction pathways.

The airline boosted global brand visibility through sponsorships like becoming the Official Airline Partner for Wimbledon Championships and extending partnerships with ICC and SL Benfica football club.

dnata's Performance

dnata’s revenue grew by 11% to AED10.4 billion (US$ 2.8 billion), supported by new contracts in airport services and catering divisions globally. However, dnata’s pre-tax profit decreased by 5% due to a one-off impairment charge but still achieved an EBITDA increase of 16% from last year.

The Emirates Group anticipates strong customer demand throughout the remainder of the fiscal year as it plans to expand capacity with new aircraft joining its fleet and additional facilities opening at dnata.

Overall capacity increased by 5% due to expanded flight operations between April and September, while passenger traffic rose by 3%, carrying nearly 27 million passengers during this period.

Emirates SkyCargo saw a significant rise in transported goods, up by 16%, thanks to strong Chinese eCommerce traffic among other factors. The division added capacity through one new Boeing freighter delivery alongside two wet-leased Boeing freighters.

The Emirates Group remains committed to agility in resource deployment within dynamic markets while continuing investments that drive growth across various sectors.

With inputs from WAM