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Emirates Group Reports Most Profitable Year Ever
A few days ago, the Emirates Group released its annual report for 2022-23, which turned out to be its best ever, with a new record profit. Following the lifting of almost all pandemic-related restrictions worldwide, there was a complete turnaround from last year’s loss.
Emirates Group posted a record profit of AED 10.9 billion ($3.0 billion) compared to last year’s loss of AED 3.8 billion ($1.0 billion).
To support the expansion of its operations and strengthen the Group’s future capabilities, Emirates intensified its global recruitment activities during the last year. As a result, the Group’s total workforce grew by 20 percent to 102,379 employees from more than 160 different nationalities.
In 2022-23, the Group has invested heavily in new aircraft, facilities, equipment, businesses and cutting-edge technology. Upcoming goals include:
- A comprehensive multi-billion dollar aircraft cabin refurbishment program;
- An order for five new 777 Freighters;
- Construction of a new pilot training center;
- New training aircraft for its cadets at the Emirates Flight Training Academy;
- Construction of a new advanced cargo facility in Erbil, Iraq.
In addition, the airline’s strategy of using modern and efficient aircraft has always been at the forefront. Last year, Emirates received two new 777 freighters. It also retired 4 older aircraft, including 2 A380s, 1 Boeing 777-300ER and 1 freighter, bringing its total fleet to 260 aircraft at the end of March, with an average fleet age of 9.1 years. Emirates’ order book stands at 200 aircraft.
Fewer restrictions, better performance
Emirates’ total passenger and cargo capacity increased by 32 percent in 2022-23, as the airline continued to restore passenger services across its network. Emirates also signed codeshare agreements with new partners, notably United Airlines and Air Canada, expanding the airline’s connectivity in the Americas to more than 200 new points.
As a result, Emirates’ total revenues increased by 81 percent to AED 107.4 billion ($29.3 billion), while total operating costs increased by 57 percent over the previous fiscal year. Fuel accounted for 36 percent of operating costs compared to 23 percent in 2021-22.
Last year, the cargo division signed commercial agreements with United Airlines and Air Canada to expand the reach and capacity of its network for customers. Emirates SkyCargo contributed 16 percent of the airline’s revenues and recorded a solid AED 17.2 billion ($4.7 billion), down 21 percent from last year’s best performance, but still strengthening its leadership in the cold chain transportation of temperature-sensitive pharmaceuticals.
Emirates ended the fiscal year with an exceptional level of liquidity of AED 37.4 billion ($10.2 billion), up 79 percent from the end of the previous year. HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of the airline and Emirates Group, expressed his pride in this achievement, which is “not only a full recovery but also a record result.”
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