Emirates Group Announces 2022-23 Financial Results

The Emirates Group has issued its 2022-23 Annual Report, indicating its most profitable year ever due to robust demand across all its operations.

Emirates made record earnings, reversing its deficit position from the previous year.

In 2022-23, Emirates and dnata enjoyed large revenue growth as the Group extended its air transport and travel-related businesses following the lifting of practically all global pandemic-related restrictions.

The Emirates Group reported a record profit of AED 10.9 billion (US$ 3.0 billion) for the fiscal year ending 31 March 2023, compared to a deficit of AED 3.8 billion (US$ 1.0 billion) the previous year. The Group’s sales were AED 119.8 billion (US$ 32.6 billion), an 81% increase from a year earlier. The Group’s cash balance was AED 42.5 billion (US$ 11.6 billion), the largest ever recorded. It was up 65% over the previous year due to robust demand across its primary business divisions and regions.

“We’re proud of our 2022-23 performance, which is not only a full recovery but also a record result,” said Sheikh Ahmed bin Saeed Al Maktoum, Chairman and CEO of Emirates Airlines and Group. This accomplishment would not have been possible without the leadership of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, whose vision has been vital to our success today and in the past. HH Sheikh Mohammed, the architect of Dubai’s progressive economic policies, also drives the Emirates Group’s trajectory. Without his motivation and assistance, Emirates would be half its size now.”

He said: I’m happy about the Emirates Group’s achievements in 2022-23 and our contribution to the restoration of air travel and tourism in the markets we service, notably Dubai’s incredible 97% year-on-year rise in international visitors in 2022. The Group is the largest operator in the UAE’s aviation sector, which supports over 770,000 jobs and contributes more than US$ 47 billion (AED 172.5 billion) to GDP. In keeping with the Dubai Economic Agenda D33, we anticipate dramatically enhancing our contribution to the UAE’s GDP over the next decade through direct and indirect employment, supply chain expenditure, tourism spending, and trade and commerce gains from cargo movement.”

“We had anticipated the strong return of travel, and as the last travel restrictions lifted and triggered a tide of demand, we were ready to expand our operations quickly and safely to serve our customers,” Sheikh Ahmed remarked of the Group’s 2022-23 turnaround performance. Our ongoing investments in our brand, products, and services have contributed to client preference and a favourable market position. Consequently, during the fiscal year 2022-23, we produced a record financial performance and cash balance. This shows the strength of our tried-and-true business strategy, meticulous foresight, the dedication of all our employees, and our robust connections throughout the aviation and travel ecosystem.”

During the year, Emirates and Dnata increased recruiting efforts around the world to support growing operations and strengthen the Group’s future capacities. Consequently, the Group’s workforce expanded by 20% to 102,379 employees of various nationalities.

To prepare the company for future growth, the Group spent AED 7.2 billion (US$ 2.0 billion) on new aircraft, buildings, equipment, companies, and cutting-edge technology in 2022-23. Our commitments include the following:

• A massive multi-billion-dollar aircraft cabin retrofit programme.
• An order for five new 777 freighters.
• The construction of a new pilot training centre.
• The opening of Bustanica, the world’s largest vertical farm in Dubai, together with CropOne.
• New training aircraft for Emirates Flight Training Academy cadets.
• Dnata’s acquisition of 30% of its ground handling operations in Brazil.
• The construction of a new pilot training centre.

The Emirates Group also made progress on its sustainability journey throughout the year. Notably, it joined the United Nations Global Compact, a voluntary project under which Emirates and Dnata will aim to incorporate the UN Sustainable Development Goals (SDGs) and Principles into their strategy, culture, and operations. The Group also pledged to the UAE Gender Balance Council to enhance female representation in mid-senior management positions nationwide to 30% by 2025.

A notable milestone for Emirates among its several environmental initiatives was the successful completion of a demonstration flight using 100% sustainable aviation fuel (SAF) in one engine of a Boeing 777. This first-in-region project contributes to pooled industry data and initiatives to enable 100% SAF flying in the future. In 2022-23, dnata committed to investing US$ 100 million (AED 367 million) over two years to increase environmental efficiency throughout its worldwide operations, contributing to its objective of reducing its carbon footprint by 50% by 2030.

Throughout the year, the Group contributed to various community and humanitarian activities in its markets, including relief operations for floods in Pakistan and earthquakes in Turkey and Syria. It also continues to participate in innovation incubators and assistance programmes aimed at developing a pipeline of trained aviation individuals and future industry solutions.

“In 2022-23, we not only brought back most of our operations, but we also grew our footprint and capabilities by investing in people, products, and new technologies – demonstrating our agility and ability,” Sheikh Ahmed stated. We continue establishing solid foundations for future success and cooperate with partners to grow our business and develop new travel and aviation solutions. As our company grows, so does our capacity to positively influence the communities we serve. “We remain committed to providing value to our customers and stakeholders while minimising our environmental impact. “We have a strongly positive view for 2023-24 and anticipate the Group to stay profitable. We will work hard to meet our objectives while monitoring inflation, rising gasoline prices, and political and economic uncertainties.”

In 2022-23, Emirates’ overall passenger and cargo capacity climbed by 32% to 48.2 billion ATKMs. The airline restored passenger services across its network in response to easing pandemic-related flight and travel restrictions.

In addition to extending services to Tel Aviv, Emirates relaunched six destinations and boosted operations to 62 destinations throughout its network this year to meet customer demand. By 31 March 2023, Emirates’ network has expanded to 150 destinations across six continents, including nine cities served only by its cargo fleet.

Emirates also added more cities to its A380 network during the year, bringing it to 43 destinations by 31 March 2023.

Emirates signed agreements with new code-share partners, most notably United Airlines and Air Canada, in 2022-23, expanding the airline’s connectivity in the Americas to over 200 new points and mutual frequent flyer programme benefits. Emirates additionally reinforced its strategic alliances with Qantas and flydubai and added new interline and codeshare partners: Airlink, AEGEAN, ITA Airways, Air Tanzania, Bamboo Airways, Batik Air, Philippine Airlines, Royal Air Maroc, and Sky Express.

During the fiscal year, Emirates got two new 777 cargo planes. It also retired four older aircraft, including two A380s, one Boeing 777-300ER, and one freighter. It had 260 units in its fleet at the end of March, with an average age of 9.1 years.

Emirates has 200 aircraft on order, including five new Boeing 777-300ER freighter orders scheduled for 2022-23.

Emirates’ overall income for the fiscal year climbed 81% to AED 107.4 billion (US$ 29.3 billion) thanks to considerably expanded capacity deployment across major markets.

Total operational costs grew 57% over the previous fiscal year. The cost of ownership (depreciation and amortisation) and fuel cost were the airline’s two most significant cost components in 2022-23, followed by staff cost. Fuel accounted for 36% of operational expenditures in 2018, compared to 23% in 2021-22. The airline’s fuel expense jumped by 143% year on year to AED 33.7 billion (US$ 9.2 billion), owing to a 49% increase in capacity and a 48% rise in average fuel price.

In 2022-23, Emirates handled 43.6 million passengers (a 123 percent increase), with seat capacity increasing by 78%. The airline reported a Passenger Seat Factor of 79.5%, up from 58.6% last year, and a 7% rise in passenger yield to 37.5 files (10.2 US cents) per Revenue Passenger Kilometre (RPKM), owing to changes in cabin and route mix, rates, and currency.

Emirates has continued to invest in providing improved client experiences. During the year, it launched its full Premium Economy experience to overwhelmingly positive customer feedback, put the first six of its newly retrofitted A380s with completely refreshed cabin interiors into service, and opened ‘Emirates World,’ a modern concept retail store that will be gradually introduced to other key markets. It also announced a US$350 million investment in next-generation in-flight entertainment systems for its A350 aircraft.