Emirates expressed optimism about its business performance this year as it reported new record profit, revenue, and cash balance levels in the previous fiscal year.
The Group released its 2023-2024 annual report showing significant profit and revenue increases for both Emirates and dnata, its air services business arm.
For the financial year ended March 31, 2024, the Emirates Group posted a record profit of AED 18.7 billion (US$5.1 billion), up 71% compared with an AED 10.9 billion (US$3.0 billion) profit last year.
The Group's revenue stood at AED 137.3 billion (US$37.4 billion), an increase of 15% over last year's results.
Emirates said the Group's cash balance was AED 47.1 billion (US$12.8 billion), the highest ever reported, up 11% year-over-year.
"Combined Group profits for the last 2 years, at AED 29.6 billion, surpass pandemic losses of AED 25.9 billion during 2020-2022," the carrier said.
Cargo volumes up 18% YoY
Meanwhile, Emirates SkyCargo carried 2.2 million tonnes of goods around the world in 2023-24, up 18% from the previous year, as increased passenger operations expanded available cargo capacity.
The carrier noted that the leasing of three 747 freighters during the year also unlocked immediate capacity to serve demand on busy routes.
"This reflects the high customer demand for its specialist logistics solutions, the reach and connectivity of Emirates' global network, Dubai's world-class sea-air hub capabilities, and the fruits of Emirates SkyCargo's ongoing investments in digital technology, infrastructure, and products," it said in a statement.
Despite continued challenges in global logistics, Emirates said the cargo division reported a solid revenue of AED 13.6 billion (US$3.7 billion), contributing 11% to the airline's total revenue.
Cargo yield per Freight Tonne Kilometre (FTKM) declined by 32%, returning to pre-pandemic marketplace levels.
During the year, the carrier launched Emirates Vital and Emirates Medical Devices, two purpose-built cargo solutions to serve the unique requirements of the life sciences and healthcare sector.
Emirates has launched Emirates Delivers in Kuwait to connect shoppers with e-commerce brands in the UK, the US, and the UAE. The service is expected to expand significantly in the coming years, focusing on markets that currently lack business-to-consumer delivery solutions.
At the end of 2023-24, Emirates' SkyCargo's total freighter fleet stood at 11 Boeing 777Fs. The cargo division expects delivery of its 5 additional Boeing 777Fs on order from mid-2024.
Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of Emirates Airline and Group, said the Group's excellent financial standing today places the company in a "strong position" for future growth and success.
He also noted major projects are already underway, including a multibillion-dollar aircraft fleet and cabin renewal programme; new catering, cargo, and ground handling capabilities; and advanced technologies to support the Group's operations, among others.
In 2023-24, the Group also collectively invested AED 8.8 billion (US$2.4 billion) in new aircraft, facilities, equipment, companies, and the latest technologies to support its growth plans.
"We enter our 2024-25 financial year on strong foundations for continued growth. Emirates will receive delivery of 10 new A350 aircraft in 2024-25, adding to our fleet mix and supporting the next phase of its network growth," the Group's chairman and CEO said.
Al Maktoum noted that dnata will also continue to leverage synergies and scale across its business divisions to grow its footprint and capabilities.
Business outlook "positive"
"The business outlook is positive, and we expect customer demand for air transport and travel to remain strong in the coming months. As always, we will keep a close watch on costs and external factors such as oil prices, currency fluctuations, and volatile environments caused by socio-political changes," he said.
"Our business model has been tested before, and I am confident in our resilience and ability to respond quickly to opportunities and challenges," the Emirates Group chief added.
Al Maktoum noted that the Dubai government's AED 128 billion (US$35 billion) plan to start the next phase of expansion at Al Maktoum International Airport, which will eventually be the new hub for Emirates and dnata's operations, will further expand and enhance Dubai's aviation and logistics infrastructure and boost Emirates and dnata's growth.
