Emirates Group expects to return to profitability this financial year after the headwinds in the past due to the wide-ranging impact of Covid-19.
For the financial year ended March 31, the Emirates Group posted a loss of AED 3.8 billion (US$ 1billion), narrower than the AED 22.1 billion(US$ 6.0 billion) loss recorded last year. The Group's revenue was AED 66.2 billion (US$18.1 billion) recording an increase of 86% over last year's results.
The Emirates Group's cash balance was also up 30% to AED 25.8 billion (US$7 billion) due to strong demand across its core business divisions and markets, triggered by the easing of pandemic-related restrictions.
Return to profitability in 2022-2023
In reporting the group's performance, Sheikh Ahmed bin Saeed Al Maktoum, chairman, and chief executive, of Emirates Airline and Group, said for the past year, 2021-2022, the airline focussed on restoring its operations quickly wherever pandemic-related restrictions eased across its markets as business recovery picked up the pace, particularly in the second half of the year.
The Emirates chief noted that the group expects to bounce back this year — but noted new challenges in the market including the ongoing Russia-Ukraine war and high fuel prices.
"For the Emirates Group, 2021-22 was largely about recovery, after the toughest year in our Group’s history. It’s not just about restoring our capacity, but also augmenting our future capabilities as we rebuild," said Sheikh Ahmed bin Saeed Al Maktoum.
"We expect the Group to return to profitability in 2022-23, and are working hard to hit our targets while keeping a close watch on headwinds such as high fuel prices, inflation, new COVID-19 variants, and political and economic uncertainty."
Sheikh Ahmed bin Saeed Al Maktoum added that Emirates' investments in infrastructure and technology, among others, will also continue to propel growth for the airlines.
In the reporting financial year, the Emirates Group collectively invested AED 7.9 billion (US$ 2.2 billion) in new aircraft and facilities, and the latest technologies to position the business for recovery and future growth.
Emirates SkyCargo continues to recover
Meanwhile, the airline's cargo business — Emirates SkyCargo — saw its volumes continue to recover in the 2021/2022 financial year with revenues surpassing pre-Covid 19 levels.
For the 12-month period ending March 31, Emirates SkyCargo reported that its revenues rose 26.6% year-on-year to AED21.6 billion (US$5.88 billion), also up from the AED13.1 billion (US$3.57 billion) seen in the pre-pandemic financial year 2018/2019.
Cargo volumes for the period were up 14.2% to 2.1m tonnes.
"Our cargo business continued to perform strongly, contributing 37% to overall Emirates revenue even with the ongoing pandemic disruptions to global logistics and supply chains," the Emirates Group said in a statement, adding that as of June 30, 2021, Emirates SkyCargo has already restored services to over 90% of its pre-pandemic network.
The Dubai-based carrier noted significant demand for essential goods and medical supplies during the period as the vaccination rates accelerate, and global supply chain woes pushed more volumes on air freight rather than the sea.
By March 2022, the airline said Emirates SkyCargo had transported one billion doses of Covid-19 vaccines worldwide originating mainly from Amsterdam, Brussels, Chicago, Johannesburg, and Hyderabad.
With this increased demand for the transport of pharmaceutical products, Emirates said revenue for this vertical crossed AED 2 billion mark for the first time in Emirates SkyCargo's history.
Emirates' cargo division also moved 260,000 tonnes of perishables during the 2021/2022 financial year from various agricultural markets, up 10% year on year, while its charter business also remained strong amidst supply chain disruptions.
Emirates SkyCargo had 10 B777 freighters during the period, although the airline announced that it will acquire two new Boeing 777 freighters and convert four of its existing 777-300ER aircraft into freighters.
