Emirates rakes in $4.7 billion profit in 2023

Emirates, the Dubai-based long-haul carrier, announced on Monday a record profit of $4.7 billion for the year 2023, marking a robust recovery from the disruptions caused by the coronavirus pandemic. The airline reported revenues of $33 billion, an increase from $29.3 billion the previous year, with profits in that year totaling $2.9 billion.

The airline transported 51.9 million passengers during its 2023 financial year, up from 43.6 million in the previous period. Sheikh Ahmed bin Saeed Al Maktoum, Emirates’ chairman and CEO, attributed the success to strong global demand for air transport and travel services, and the airline’s ability to quickly adapt to customer needs. He highlighted the airline’s continuous investment in its services, partnerships, and workforce as key factors in achieving these results.

Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai, reflected on the airline’s 39-year history, noting its significant impact on the aviation industry and expressing optimism for the future.

In related developments, Dubai International Airport, where Emirates is based, also saw a significant increase in traffic, with 86.9 million passengers in the last year, nearing pre-pandemic levels. The airport, which is the busiest in the world for international travel, plans a major expansion to a second location, with a project estimated at nearly $35 billion over the next decade.

The Emirates Group, which includes Emirates airline, travel company dnata, and various food, beverage, and leisure enterprises, posted a profit of $5.1 billion on revenues of $37.4 billion. The group announced a dividend of $1 billion to its owner, the Investment Corporation of Dubai, and awarded its staff of over 112,000 a 20-week bonus pay.

The report also highlighted that the airline had repaid $2.6 billion of a $4 billion bailout received from the Dubai government during the peak of the pandemic.

On the fleet expansion front, Emirates recently committed to a $52 billion purchase of 90 Boeing 777 aircraft and added five Boeing 787 Dreamliners to its order. The airline is set to introduce the Airbus A350 to its routes in September and has launched a $2 billion retrofit program for its existing aircraft.

However, the carrier faces challenges, including competition from new entrants like Riyadh Air and environmental concerns like the recent record rainfall in the UAE that disrupted operations.