Emirates Group’s record profit for FY24 translates to 5-month bonus pay for employees in May

Emirates A380 aircraft
Emirates A380 flying over Dubai. This is the aircraft model used by the airline to demonstrate a flight using 100 per cent Sustainable Aviation Fuel in one engine. Photo courtesy: Emirates

Emirates Group, the flagship venture of the Government of Dubai, is set to make its employees extremely happy at the end of May 2024. Soaring with a bumper group revenue of AED 137 billion (USD 37.4 billion) and a profit of AED 18.7 billion (USD 5 billion), the group is reportedly giving its employees a massive bonus worth 20 weeks’ salary — that is, 5 months’ pay — that will be credited with their salaries at the end of May.  About 92 per cent of the Emirates Group’s profit came from Emirates airline.

Congratulating the Emirates Group, of which the largest operation is Emirates airline, HH Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Minister of Defence, and Ruler of Dubai, wrote on X: “Emirates Airlines… a story of challenge. It took off 39 years ago, and the world of aviation is no longer what it was before… The company experienced challenges… and adapted to the circumstances… and contributed to the success of Dubai and the Emirates, economic, tourism and development, linking it with hundreds of cities on the five continents of the world, and today its total income reaches in one year, 137 billion dirhams.”

The Ruler of Dubai added in his post: “Our thanks to the work team, led by Sheikh Ahmed bin Saeed… and our appreciation to everyone who was with us through four decades of work and flight that did not stop… and what is coming will be more beautiful, greater and better, God willing.”

Emirates Group personnel
Emirates Group personnel, from Emirates airline and airport services agency dnata. Photo courtesy: Emirates

The Emirates Group, while announcing its FY2023-24 results this week, reported its “best-ever financial performance with record profit of AED 18.7 billion (USD 5.1 billion), up 71 per cent from last year, record revenue, and record level of cash assets”.

It said: “Group revenue increased 15 per cent to a new high of AED 137.3 billion (USD 37.4 billion), driven by strong customer demand across its businesses.

“[The Group] ends year with highest-ever cash balance of AED 47.1 billion (USD 12.8 billion).

“The Group declares a dividend of AED 4 billion (USD 1.1 billion) to its owner, the Investment Corporation of Dubai (ICD).

“The chairman credits [this] record performance to Dubai’s progressive policies, says profits enable further investments in new aircraft, facilities and equipment, technology, products and services, and its people.”

According to the media release on the FY24 results: “Both Emirates [airline] and [airport services agency] dnata saw significant profit and revenue increases in 2023-24, as the Group expanded its operations around the world to meet strong customer demand for its high-quality products and services.”

Like all other aviation-related businesses in the world, the Emirates Group had been hit by the pandemic, too, but strong performances in FY23 and FY24 have seen those losses wiped out.

This week’s Emirates media release said: “Combined Group profits for the last 2 years, at AED 29.6 billion, surpass pandemic losses of AED 25.9 billion during 2020-2022.”

Emirates airline: Driven by the appetite for travel across customer segments and the strength of its global network, Emirates airline hit a new record profit of AED 17.2 billion (USD 4.7 billion) exceeding last year’s AED 10.6 billion (USD 2.9 billion) result, with an exceptional profit margin of 14.2 per cent, making it the best performance in the airline’s history.

dnata: The Group’s airport services agency dnata increased its profit by 330 per cent to AED 1.4 billion (USD 387 million) in 2023-24, reporting solid results across its business divisions. Total revenue for dnata increased by 29 per cent to hit a new record of AED 19.2 billion (USD 5.2 billion), driven by increased flight and travel activity across the world.

HH Sheikh Ahmed bin Saeed Al Maktoum, Emirates Group CEO
HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group. Photo courtesy: Emirates

HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group, said, “The Emirates Group has once again raised the bar to deliver a new record performance. Throughout the year, we saw high demand for air transport and travel-related services around the world, and because we were able to move quickly to deliver what customers want, we achieved tremendous results.

“We are reaping the benefit of years of non-stop investments in our products and services, in building strong partnerships, and in the capabilities of our talented people.

“Huge credit is also due to the UAE’s visionary leaders, especially HH Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. It is thanks to their leadership and the nation’s progressive policies that the Emirates Group is able to flourish.

“Both Emirates and dnata have forged successful business models leveraging Dubai’s unique advantages, in turn generating enormous value for Dubai and the communities they serve around the world.”

The CEO said: “The Emirates Group’s excellent financial standing today places us in a strong position for future growth and success. It enables us to invest to deliver even better products, services, and more value to our customers and stakeholders.”

Emirates airline meal service
Emirates airline meal service on board. Photo courtesy: Emirates

Emirates Group highlights of 2023-24

  • In 2023-24, the Emirates Group collectively invested AED 8.8 billion (USD 2.4 billion) in new aircraft, facilities, equipment, companies, and the latest technologies to support its growth plans.
  • The Emirates Group’s total workforce grew by 10 per cent to 112,406 employees, its largest size ever, as Emirates and dnata continued recruitment activity around the world to support its expanding operations and bolster its future capabilities.
  • The Emirates Group made significant strides in its sustainability journey during 2023-24, putting into action numerous initiatives focused on the environment, its people, customers, and communities.
  • Environmental topics were high on the agenda during the year, as the UAE hosted the world’s biggest conference for climate action, COP28, in Dubai.
  • In 2023-24, Emirates airline signed new supply agreements to uplift sustainable aviation fuel (SAF) at its Dubai hub for the very first time, and also in Amsterdam and Singapore. The airline operated the first A380 demonstration flight using 100 per cent SAF in one engine, collecting data to support industry efforts to enable a future of 100 per cent SAF flying.
  • Emirates airline established a USD 200 million fund to support R&D projects that focus on reducing the impact of fossil fuels in commercial aviation. It also became a founding entity of Air-CRAFT, a UAE-based research consortium for renewable and advanced aviation fuels; and joined The Solent Cluster, a UK initiative focused on producing low-carbon fuels for a variety of sectors, including aviation.
  • The Emirates Group’s airport services agency dnata continued to invest and induct more electric and hybrid vehicles to its global fleet of ground support equipment (GSE), adding new baggage tractors, cargo loaders, and pushback tractors to its USA operations.
  • It also converted and refurbished diesel-powered GSEs in Italy to run on Hydrogenated Vegetable Oil and electric power. dnata’s UAE businesses, including dnata logistics, Arabian Adventures, Alpha Flight Services and City Sightseeing Worldwide, transitioned to biofuel for its landside fleet of vehicles.
  • During the year, dnata became the first combined air services provider to receive the International Air Transport Association’s environmental management (IEnvA) certification for its commitment to sustainability across its UAE businesses; and Emirates airline achieved IEnvA Stage One and the IEnvA Illegal Wildlife Trade module certifications, for its efforts in environmental stewardship and anti-wildlife trafficking.
  • The Group ramped up investments in people development, rolling out a comprehensive programme of learning and training options for its workforce, in partnership with top universities and key industry partners. A Gender Balance Council was established to champion and promote gender equality within the Group.
Emirates Economy & Premium Economy Class Amenity Kits
Emirates airline Economy and Premium Economy Class Amenity Kits with United for Wildlife 2023. Photo courtesy: Emirates

Emirates Group outlook for 2024-25

Sheikh Ahmed bin Saeed said, “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.

“dnata will continue to leverage synergies and scale across its business divisions to grow its footprint and capabilities.

“In tandem, we are investing resources to minimise our environmental impact, develop our people, look after our customers and the communities we serve.”

Catering services by dnata
Catering services by dnata. Photo courtesy: Emirates

He said, “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.

“Our business model has been tested before, and I am confident in our resilience and ability to respond quickly to opportunities and challenges.”

Referring to the reported plans of Emirates airline to shift its operations from the Dubai International Airport, the CEO said, “Looking further ahead, the Dubai Government has announced plans 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.”

He added, “This AED 128 billion (USD 35 billion) investment will significantly expand and enhance Dubai’s aviation and logistics infrastructure, supporting the city’s growth, and Emirates’ and dnata’s growth.”