Significant increases in revenue during the most profitable year ever

Emirates Group achieves record profit of AED 10.9 billion

Emirates' fleet reached 260 aircraft at the end of March. Archival.

The Emirates Group released yesterday its financial report for the financial year (2022/2023), announcing its most profitable year ever, thanks to strong demand across all its businesses.

The group achieved new record profits, a complete reversal from last year's losses, while both Emirates and dnata recorded significant increases in revenue, as air transport and travel operations expanded, after almost all pandemic-related restrictions were removed around the world.

Record profits

The report for the financial year ended March 31, 2023 showed that the Emirates Group achieved a record profit of AED 10.9 billion (USD 3.0 billion) compared to a loss of AED 3.8 billion (USD 1.0 billion) in the previous year.

Group revenues reached AED 119.8 billion (US$ 32.6 billion), up 81% from the previous year. The Group's cash balances stood at AED 42.5 billion (US$ 11.6 billion), the highest ever, up 65% from the previous year, mainly due to strong demand across all business and market divisions.

Emirates Airline Performance

By the end of the 2022/2023 financial year, Emirates' total passenger and cargo capacity increased by 32% to reach 48.2 billion available tonnes of kilometres, as the airline continued to restore passenger services across its network, in line with the lifting of pandemic-related flight and travel restrictions.

Emirates resumed flights to six destinations, increased operations to 62 cities across its network throughout the year, and launched its service to Tel Aviv.

By 31 March 2023, Emirates' network covered 150 destinations across six continents, including nine cities served by a freighter fleet alone.

Emirates also restarted its Airbus A380 aircraft to more cities during the year, bringing the giant aircraft network to 43 destinations on March 31, 2023.

Agreements & Partnerships

Emirates signed new codeshare agreements in 2022/2023, most notably with United Airlines and Air Canada, expanding the airline's connectivity in the Americas to more than 200 new points, strengthening its strategic partnerships with Qantas and flydubai, and adding new interline and codeshare partners with Airlink, Aegean, ETA Airlines, Air Tanzania, Bamboo Airways, Batek Air, Philippine and Royal Ownership Morocco", and «Sky Express».

Delivers planes

During the 2022/2023 financial year, Emirates took delivery of two new Boeing 777 freighters. Four aircraft were decommissioned: two A380s, one Boeing 777-300ER, and one cargo plane. Its fleet at the end of March numbered 260 aircraft, with an average fleet age of 9.1 years.

Emirates orders remained at 200 aircraft, including five Boeing 777F freighters announced in 2022/2023. With capacity strengthened in most markets, Emirates' total revenue for the financial year increased by 81% to AED 107.4 billion ($29.3 billion).

Currency exchange fluctuations in key markets for the airline, notably the Euro and the British Pound, and the depreciation of the Pakistani rupee, negatively impacted the airline's profitability by AED 4.5 billion ($1.2 billion).

Operational costs

Operating costs increased by 57% compared to the previous fiscal year, while cost of ownership (depreciation and amortization) and fuel cost accounted for the two largest components of the total cost in 2022/2023, followed by the cost of employees. Fuel accounted for 36% of operating costs compared to 23% in 2021/2022, and the fuel bill increased by 143% compared to the previous year to reach AED 33.7 billion (US$ 9.2 billion), driven by a 49% increase in fuel purchases in line with higher capacity and a 48% increase in average fuel prices. With the removal of COVID-19 travel restrictions globally, Emirates has significantly improved its financial results, posting a record profit of AED 10.6 billion ($2.9 billion) after a loss of AED 3.9 billion ($1.1 billion) in the previous year. and a profit margin of 9.9%, the best performance in the airline's history.

43.6 million passengers

Emirates carried 43.6 million passengers, a growth of 123%, in the fiscal year 2022/2023, with seat capacity increasing by 78%.

Seat occupancy was 79.5% compared to 58.6% in the previous fiscal year. The rate of return per passenger per kilometre increased by 7% to 37.5 fils (10.2 US cents), as a result of the development of cabins, route composition, prices and currencies.

Airline succeeds in paying AED 3 billion

Revenues from the UAE hotel portfolio during the financial year increased by 12% to AED 675 million (US$ 184 million), reflecting the growth in tourism, specifically to Dubai.

Emirates has consistently demonstrated the ability to meet its contractual obligations in various circumstances. In addition to paying financing obligations related to the aircraft when they are due, the airline has successfully repaid AED 817 billion ($17 million) of the AED 5.4 billion ($8.19 billion) it raised during the COVID-<> pandemic.

The guarantee continues to boost the confidence of its financing partners in its business model, allowing Emirates to reschedule 4.5 billion dirhams ($1.2 billion) of debt this financial year and raise 1.2 billion dirhams to finance the purchase of two new Boeing 777s with a good margin Islamic finance lease.

Emirates ended its financial year with record and unprecedented cash balances of AED 37.4 billion ($10.2 billion), up 79% compared to March 31, 2022.

24 weeks bonus for employees

The Emirates Group has rewarded its employees after its record financial results during its financial year that ended in March.

The bonus is equivalent to the 24 weeks of salary that the Group's employees will receive in the payroll during the month of May.

The total number of employees in the Emirates Group increased by 20% to 102,379 employees, representing more than 160 nationalities.