He added: “The excellent performances of the 2023-24 financial year augur strong growth and success for the Group in the future. They enable us to invest in providing even better products and services, as well as added value to both our customers and partners.”
Many important projectsare already underway, including: the multi-billion dollar aircraft and cabin fleet renewal program, new catering, cargo and ground handling capabilities, advanced technologies to support the Group's operations, expanded training and human resource development programs , as well as initiatives to promote the Group's sustainability agenda.
During the financial year 2023-24, the Group has invested a total of AED 8.8 billion (US$2.4 billion) in new aircraft, facilities, equipment, companies and the latest technologies to support its growth plan.
The < strong>human resourcesof the Group increased by 10% to 112,406 employees – the largest number of members it has ever had – as Emirates and dnata continued to hire around the world to support expanding operations and strengthen future capabilities.
The Group has taken significant steps towards sustainability during the 2023-24 financial year, taking forward a wide range of initiatives focused on the environment, people, customers and communities.
During the year, environmental issueswere also in the spotlight as the UAE hosted COP28 in Dubai, the world's largest conference on global climate action.
Additionally, during the 2023-24 financial year, Emirates signed new supply agreements to increase sustainable aviation fuel (SAF) to its Dubai hub for the first time, as well as Amsterdam and Singapore. The airline has completed the first flight of an A380 using 100% SAF on one engine, gathering data to support industry efforts to enable future 100% SAF flights.
Recognizing that today's airlines have limited sustainable solutions to significantly reduce carbon dioxide emissions, Emirates has created a US$200 million fund to support Research and Development projects focused on reducing the impact of conventional fuels on commercial air transport. He also became a founding member of Air-CRAFT, a UAE-based research consortium on renewable and advanced aviation fuels, and joined The Solent Cluster, a UK initiative focused on producing low-carbon fuels for various sectors, including of aviation.
dnata continued to invest in and introduce more electric and hybrid vehicles to its global ground support equipment (GSE) fleet, adding new baggage tractors, cargo loaders and pushback tractors in the US. It also converted and refurbished GSE diesels in Italy to run on hydrogenated vegetable oil and electricity. dnata's business in the UAE, including dnata logistics, Arabian Adventures, Alpha Flight Services and City Sightseeing Worldwide, have moved towards biofuels in their ground vehicle fleet.
During the year, dnata became the first air service provider to receive International Air Transport Association (IEnvA) environmental management certification for its commitment to sustainability across its operations in the UAE, and Emirates received IEnvA Stage One certifications and IEnvA Illegal Wildlife Trade module, for its efforts in environmental management and combating illegal wildlife trade.
The Group has increased investment in human resources, developing a comprehensive program of education and training options in collaboration with leading universities and important industry partners. In addition, a Gender Balance Council was established to defend and promote gender equality within the Group.
Emirates Group has expanded its ESG-related actions and based on the latest report for 2023-24, is adopting practices based on GRI standards. The Group's performance is also planned to evolve to meet ISSB and CSRD requirements in the coming years[1].
His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and CEO of Emirates Airline and Emirates Group, commented: “The 2024-25 financial year begins on a strong foundation and prospects for growth. Emiratesis expected to take delivery of 10 new A350 aircraft during the year 2024-25, strengthening development of its network. The dnatawill continue to leverage synergies and expand its business to increase its footprint and capabilities. In addition, we make investments aimed at minimizing our environmental impact, developing our people, while caring for both our customers and the communities in which we operate. The outlook is very positive and we expect passenger demand for air transport and travel to remain strong in the coming months. As always, we will continue to closely monitor costs and external factors such as oil prices, currency fluctuations and the ever-changing environment caused by socio-political changes. Our business model has been tested in the past and I am confident in its resilience, as well as our ability to respond quickly to opportunities and challenges.”
As he added: “Looking to the future, the Dubai government has announced plans to expand Al Maktoum International Airport, which will become a new hub for Emirates and dnata. This investment, which amounts to AED 128 billion (US$ 35 billion), will significantly strengthen Dubai's aviation and supply chain infrastructure, supporting both the growth of Dubai and the development ofEmirates and dnata”.
Emirates' total passenger and cargo capacity increased by 20% in 2023-24 to 57.7 billion Available Ton Kilometers (ATKM) as the airline continued to recover from pre- pandemic levels.
Providing passengers with even greater connectivity, Emirates has relaunched flights to Tokyo (Haneda), increased flights to 29 destinations and launched new daily flights to Montreal, Canada. Emirates has also entered into codeshare and connecting flights agreements with 11 airlines, further expanding the reach of its network. By 31 March 2024, Emirates' network included 151 destinations on six continents, including 10 cities served only by its freighter fleet.
Emirates rolled out its flagship A380 aircraft and Premium Economy to even more cities during the year as 16 more aircraft joined its US$2 billion cabin conversion program, fully equipped with the airline's latest products . As of March 31, 2024, Emirates' A380 served 49 destinations and passengers were able to enjoy the Emirates Premium Economy Class experience to and from 15 cities worldwide.
The entire fleet of the airline stood at 260 at the end of March, with an average fleet age of 10.1 years.
Emirates' orders totaled 310 aircraft, following the airline's announcement of orders worth a total of US$58 billion for 110 additional Boeing 777s, 787s and Airbus A350s at the Dubai Airshow in 2023. These next-generation wide-body aircraft will replace older aircraft and will contribute to the strengthening of the fleet, while they are fully integrated with the airline's long-term commitment to fly modern aircraft that are efficient in their operation and capable of offering customers the most modern comforts and in-flight experiences.
Showing significantly enhanced capacity growth in most markets, Emirates' total revenue for the financial year increased by 13% to AED 121.2 billion (US$33 billion). Currency fluctuations in some of the airline's major markets, notably the Pakistani rupee, the Egyptian pound and the Indian rupee, negatively impacted the airline's profitability by AED 2 billion (US$0.6 billion).
In the financial year 2023-24 operating costs amounted to AED 37.6 billion (US$10.3 billion), demonstrating the strong commercial activity and allowing the airline to further develop its business in the future.
Total operating costs increased by 8% compared to the previous financial year. Ownership costs (depreciation and amortization) and fuel costs were the two biggest costs for the airline in 2022-23, followed by employee costs. Fuel accounted for 34% of operating costs compared to 36% in 2022-2023. The airline's fuel costs rose to AED 34.2 billion (US$9.3 billion) compared to AED 33.7 billion (US$9.2 billion) a year earlier, the highest increase of 24 % due to increased flights offset by lower average fuel price (-18%), including offsetting gains.
Driven by increased demand for travel, the strength of its global network and the appeal of its products, the airline set a new record profit of AED 17.2 billion (US$4.7 billion), surpassing the previous record for the year of AED 10.6 billion (US$ 2.9 billion), with a profit margin of 14.2%, marking the best performance in the airline's history.
Emirates carried 51.9 million passengers (up 19%) in 2023-24, with seat capacity up 21%. The airline recorded a passenger load factor of 79.9%, compared to last year's factor. and a 2% decrease in passenger yield to 36.6 fils (US 10 cents) per Revenue Passenger Kilometer (RPKM), due to a change in cabin and route mix, fares and foreign exchange.
Emirates has continued to invest in providing ever-improving passenger experiences. During the year, it invested AED 30 million to upgrade Emirates lounges with refurbished facilities that reopen to serve premium customers and frequent flyers in Brisbane, Dusseldorf, Frankfurt, Hamburg, Hong Kong, Johannesburg, Manchester and Munich. Emirates has reinstated its Chauffeur Drive service in 82 cities on its network and introduced this free service to premium customers in Indonesia, Morocco and Turkey.
The airline also made a number of menu enhancements and the amenities provided to the in-flight entertainment content, which included the launch of complimentary loungewear and pre-order meals in Business Class.
Emirates SkyCargoreaffirmed its strong position in global air cargo, carrying 2.2m tonnes of goods worldwide in 2023-24, up 18% on the previous year, as increased passenger activity helped expand available cargo capacity, with the lease of three 747 freighters during the year immediately providing capacity to service demand on popular routes. This reflects high customer demand for specialized supply chain solutions, the reach and connectivity of Emirates' global network, the capabilities of Dubai's world-class aviation hub and the result of Emirates SkyCargo's continued investment in technology, infrastructure and products.
Despite ongoing challenges in the global supply chain, cargo continued to deliver a strong performance recording revenues of AED 13.6 billion (US$3.7 billion), contributing 11% to the airline's total revenue. Freight Throughput per Freight Ton Kilometer (FTKM) decreased by 32% returning to pre-pandemic levels.
During the year, it introduced two purpose-built cargo solutions, Emirates Vital and Emirates Medical Devices, to serve the requirements of the life sciences and healthcare sector. It also introduced the Emirates Delivers service in Kuwait to provide branded products via e-commerce in the UK, US and UAE. Emirates Delivers is expected to expand significantly in the coming years, focusing on markets where consumer product delivery is underserved by businesses.
At the end of 2023-2024, Emirates SkyCargo's total fleet of cargo aircraft totaled 11 Boeing 777Fs, while an additional 5 Boeing 777Fs are expected to be delivered on order in mid-2024.
Among Emirates Group companies and subsidiaries, Emirates Flight Catering and MMI/Emirates Leisure Retail (ELR) recorded remarkable results in 2023-24.
Emirates Flight Catering recorded record revenue of AED 970 million (US$264 million) from external customers due to increased traffic at Dubai airports. It served 76.9 million meals to passengers, 19% more meals compared to the previous year, and saw growing demand for activities such as Linencraft (cleaning services) which mainly serve airline passengers.
Revenue from MMI/ELR grew by 18% to AED 2.9 billion (US$796 million) as it expanded its business in the UAE to meet growing wholesale and retail demand from the ever-growing tourism sector. ELR recorded record sales worldwide, with strong contributions from its core markets of the UAE, the US and Australia.
Emirates' hotel portfolio revenue fell 2% over the previous year to AED 660 million (US$180 million) as a result of the temporary shutdown of the Wolgan Valley property in Australia.
< p>In another year of strong performance, Emirates continued to consistently meet all of its aircraft-related financial liability repayment commitments, paying off an additional AED 2.2 billion (US$596 million), out of 17, AED 5 billion (US$4.8 billion), borrowed during the pandemic. This has significantly reduced total outstanding debt and lays a strong foundation for the airline for potential future funding for growth and expansion into a new fleet.
Responding to the challenges posed by the ever-changing fuel market environment during the financial year, Emirates leveraged futures contracts and options on various commodities, such as brent and jet fuel, to reduce the cost of the current year, as well as to ensure significant volumes for the future. In addition, it significantly mitigated the impact of high interest rates on results by properly managing net exposure. Emirates continued its balanced approach to managing currency risk through the use of currency options, forward contracts and physical hedges. This methodical approach allowed for improved cash flow forecasting against volatile market changes, thereby enhancing financial stability.
Emirates closed the financial year with an outstanding cash balance of AED 42.9 billion ( 11.7 billion USD), which corresponds to an increase of 15% compared to March 31, 2023.
The Performance of dnata
dnata recorded a 330% increase in profitability to AED 1.4 billion (US$387 million) during the financial year 2023-24, posting strong performance across its business lines.
The total revenuednata's revenues increased by 29% to a new record of AED 19.2 billion (US$5.2 billion), reflecting increased global air and passenger traffic. Its international operations represent 75% of its revenue, marking an increase of 3% compared to the previous financial year. During the year, dnata strengthened its customer portfolio and worked closely with its customers to effectively respond to the increased air traffic and travel demand, mainly in the markets of interest: Australia, Europe, UAE, UK and USA.< /p>
Laying the foundations for further growth in the future, dnata, in 2022-23 proceeded with investments of AED 464 million (US$ 126 million). Among other things, major investments during the year were in new electric and hybrid ground equipment to support the airport's operation as part of its environmental strategy, as well as the expansion of marhaba in the Philippines, Italy and the UAE.
In the financial year 2022-23, the operating costof dnata increased by 22% to AED 17.8 billion (US$4.8 billion), mainly due to AED 2 billion (US$545 million) used for dividend payments to the owner company, ICD; as well as the financing of investments and debt repayments. It recorded positive operating cash flows of AED 1.9 billion (US$507 million) in 2023-24, reflecting significant improvement in revenue.
Revenue from its operations dnata at airports, including cargo and groundhandling, increased to AED 8.8 billion (US$2.4 billion).
The number of aircraft operated by dnata worldwide increased by 9% to 778,026, and cargo handling decreased by 5% to 2.9 million tonnes, reflecting an increase in new partnerships and increased flight activity worldwide.
During 2023-24, dnata continued to invest in infrastructure and latest technologies to meet customer needs. It integrated autonomous drones into its operations in the UAE, implemented artificial intelligence solutions in Singapore and continued to develop One Cargo, its advanced cargo management system. dnata also announced that it will expand its operations at Rome's Fiumicino Airport, where its subsidiary, Airport Handling, won a seven-year ground handling licence, to support which dnata will invest €20 million in new and advanced ground handling equipment.
dnata catering and retail services contributed AED 6.5 billion (US$1.8 billion) to the company's total revenue, an increase of 35%. The number of in-flight meals served increased to 123 million meals, a 10% increase compared to the previous year, as airlines fully recovered and increased flight schedules.
The division expanded its customer base in key markets with new contracts in 2023-24, including with the following: Sri Lankan Airlines and Turkish Airlines in Australia (Sydney and Melbourne), China Airlines in the Czech Republic (Prague), JetBlue in Ireland (Dublin), Biman Bangladeshi Airlines in Italy (Rome Fiumicino), Royal Jordanian in the UK (London Stansted) and Etihad Airways in the US (Boston). It also expanded its airport retail network with new F&B outlets at Henri Coandă International Airport in Romania and Sharjah Airport in the UAE.
Revenue from dnata's travel departmentgrew 48% to AED 3.5 billion (US$951 million) with strong contributions from Destination Asia, the destination management in Asia, and Imagine Cruising, which specializes in cruise vacations, in which dnata has acquired majority stake. Total value of travel services sold increased 27% to AED 8.9 billion (US$2.4 billion), reflecting the division's ability to provide relevant products to meet strong demand across B2B and B2C travel sectors worldwide.
In 2023-24, dnata's travel division entered into agreements with new partners in the tourism and hospitality industry as well as other partners to expand the portfolio of travel products, services and of the solutions provided. In this context, it entered into a strategic partnership with AMEX GBT, which doubled the size of its corporate travel in the Middle East.
The complete Emirates Group Annual Report 2023-24, which includes Emirates, dnata and their subsidiaries, is available on the website: www.theemiratesgroup.com/annualreport
[1] The Global Reporting Initiative (GRI), International Sustainability Standards Board (ISSB), and Corporate Sustainability Reporting Directive ( CSRD) are internationally recognized standards for corporate reporting on environmental, social and corporate governance (ESG) data and initiatives.
