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Emirates Group announces record half-year performance for 2022-23

Web Desk 07:53 PM | 10 Nov, 2022
Emirates Group announces record half-year performance for 2022-23

KARACHI - The Emirates Group today announced its half-year results for its 2022-23 financial year. The Group is reporting a 2022-23 half-year net profit of AED 4.2 billion (US$ 1.2 billion), a record half-year performance, and a turnaround of almost AED 10 billion from its AED 5.7 billion (US$ 1.6 billion) loss for the same period last year.

The Group also reported an EBITDA of AED 15.3 billion (US$ 4.2 billion), a marked improvement from AED 5.6 billion (US$ 1.5 billion) during the same period last year, illustrating its strong operating profitability.

Group revenue was AED 56.3 billion (US$ 15.3 billion) for the first six months of 2022-23, up 128% from AED 24.7 billion (US$ 6.7 billion) last year. This was driven by the strong demand for air transport across the world with the further easing and removal of pandemic-related travel restrictions. 

The Group closed the 1st half year of 2022-23 with a strong cash position of AED 32.6 billion (US$ 8.9 billion) on 30 September 2022, compared to AED 25.8 billion (US$ 7.0 billion), as on 31 March 2022. The Group has been able to tap into its own strong cash reserves to support business needs, including debt payments and pandemic-related commitments.

His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, the Chairman and Chief Executive, of Emirates Airlines and Group, said: “The Group’s record performance for the first six months of 2022-23 is the result of forward planning, agile business response, and the efforts of our talented and committed workforce.

“Across the Group, the recovery of our operations accelerated as more countries eased and removed travel restrictions. We were ready and amongst the first movers to serve the strong customer demand thanks to our robust business plans, the support of our industry partners, and our ongoing investments in people, technology, and products and services.

“For the coming months, we remain focussed on restoring our operations to pre-pandemic levels and recruiting the right skills for our current and future requirements. We expect customer demand across our business divisions to remain strong in H2 2022-23. However, the horizon is not without headwinds, and we are keeping a close watch on inflationary costs and other macro-challenges such as the strong US dollar and the fiscal policies of major markets.”

Sheikh Ahmed added: “The Group expects to return to our track record of profitability at the close of our full financial year.”

In line with increased capacity and business activities, the Emirates Group’s employee base, compared to 31 March 2022, grew 10% to an overall count of 93,893 on 30 September 2022. Both Emirates and dnata have also embarked on targeted recruitment drives to support their future requirements.

Emirates Airline

Emirates continued to focus on restoring its global passenger network and connections through its Dubai hub, restarting services and adding flights to meet customer demand across markets.

In June, it launched services to Tel Aviv, a new destination. Expanding connectivity options for customers, Emirates launched codeshare and interline agreements with 12 airlines in the first six months of 2022-23: Airlink, AEGEAN, ITA Airways, Air Baltic, Air Canada, Bamboo Airways, Batik Air, Finnair, Royal Air Maroc, Sky Express, Sun Country Airlines, and United Airlines.

By 30 September, the airline was operating passenger and cargo services to 140 airports, utilising its entire Boeing 777 fleet and 73 A380s.

During the first six months of 2022-23, Emirates took delivery of 2 new Boeing 777 freighters and returned 1 older freighter from its fleet as part of its long-standing strategy to minimise its emissions footprint and operate modern, efficient aircraft. With new passenger aircraft only expected to arrive in 2024, Emirates this month began its multi-billion dollar programme to retrofit 120 aircraft with its latest cabin interiors and products.

Emirates continued to introduce new products and customer initiatives to deliver on its ‘fly better’ promise, including enhanced menus across all cabin classes, and the launch of a new hospitality programme to uplift service training and delivery. In August, Emirates launched its full Premium Economy experience to hugely positive, “booked-out” customer response on its flights to London, Paris and Sydney. Emirates plans to introduce its Premium Economy product on 5 more routes before the end of 2022-23, as more aircraft fitted with these popular seats roll out of its retrofit programme.

Overall capacity during the first six months of the year increased by 40% to 22.8 billion Available Tonne Kilometres (ATKM) due to an expanded flight programme as more countries eased travel restrictions.  Capacity measured in Available Seat Kilometres (ASKM), increased by 123%, whilst passenger traffic carried measured in Revenue Passenger Kilometres (RPKM) was up by 265% with an average Passenger Seat Factor of 78.5%, compared with 47.9% during the same period last year.

Emirates carried 20.0 million passengers between 1 April and 30 September 2022, up 228% from the same period last year. Emirates Skycargo uplifted 936,000 tonnes in the first six months of the year, a 14% decrease compared to the same period last year, as the airline shifted capacity from its “mini-freighters” back to passenger operations.

Emirates' profit for the first half of 2022-23 hit a new record of AED 4.0 billion (US$ 1.1 billion), compared to last year’s loss of AED 5.8 billion (US$ 1.6 billion). Despite an unfavourable currency exchange environment, Emirates revenue, including other operating income, of AED 50.1 billion (US$ 13.7 billion) was up 131% compared with the AED 21.7 billion (US$ 5.9 billion) recorded during the same period last year. The airline’s strong turnaround performance is driven by strong passenger demand for international travel across markets and shows the airline’s ability to plan ahead to meet the demand, activate capacity, and attract customers with its high-quality products and value proposition.

Emirates’ operating costs increased by 73% against overall capacity growth of 40% mainly due to the substantial increase in fuel costs which more than tripled compared to the same period last year. This was primarily due to a 65% higher fuel uplift in line with increased flight operations, and the doubling of average oil prices during this period. Fuel, which was the largest component of the airline’s operating cost in pre-pandemic reporting cycles, accounted for 38% of operating costs, one of the highest ratios ever, compared to 20% in the first six months of last year.

Driven by strong demand and increased operations during the six months, Emirates’ EBITDA grew nearly three times to AED 14.7 billion (US$ 4.0 billion) compared to AED 5.0 billion (US$ 1.4 billion) for the same period last year.

dnata

In line with increased air and passenger traffic across markets, dnata’s businesses in cargo and ground handling, catering and retail, and travel services saw a significant uptick in operations. This drove strong revenue growth in the first six months of 2022-23, however, dnata’s overall performance was dampened by inflation and increased costs across its markets.

In the first half of 2022-23, dnata grew its footprint with new long-term concession contracts to provide services in Zanzibar (dnata airport operations), and Ras Al Khaimah (Alpha Catering). Its Airport Operations division entered the German market with the acquisition of Wisskirchen Handling Services, the exclusive operator at Cologne Bonn Cargo Centre; and acquired the remaining 30% stake to assume full ownership of its ground handling business in Brazil.

Ensuring its future readiness to provide safe and high-quality services to its customers, dnata committed US$ 100 million to implement green technology and initiatives across its business and invested US$ 17 million into its operations in Erbil, Iraq including an advanced cool chain facility, bus maintenance facility, and a new cargo warehouse.  

dnata’s revenue, including other operating income, of AED 7.3 billion (US$ 2.0 billion) doubled compared to AED 3.7 billion (US$ 1 billion) generated in the same period last year.

The overall profit for dnata is AED 236 million (US$ 64 million), compared to last year’s AED 85 million (US$ 23 million).

dnata’s airport operations remain the largest contributor to revenue with AED 3.5 billion (US$ 944 million), a 37% increase as compared to the same period last year, as customer demand continued to pick up, particularly in its UAE, US, Italy and UK businesses.  Across its operations, the number of aircraft turns handled by dnata increased by 56% to 347,581, and it handled 1.4 million tonnes of cargo, slightly down by 2% reflecting its airline customers’ increased focus on passenger operations.

dnata’s flight catering and retail operations, contributed AED 2.4 billion (US$ 651 million) to its revenue, up 212% with strong production increases in Australia, the UK and US to meet customer demand. The number of meals uplifted increased sharply by 204% to 50.5 million meals after last year’s 16.6 million.

dnata's travel division contributed AED 1.2 billion (US$ 323 million) to revenue, up 708% compared to AED 147 million (US$ 40 million) for the same period last year, driven largely by the strong recovery of travel demand and bookings in its Middle East and UK businesses. The division reported underlying total transactional value (TTV) sales of AED 4.7 billion (US$ 1.3 billion), compared to AED 726 million (US$ 198 million) for the same period last year.

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Daily Pakistan Global Web Desk

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KARACHI - Following are the foreign currency exchange rates for US Dollar, Saudi Riyal, UK Pound Sterling, U.A.E. Dirham, European Euro, and other foreign currencies in Pakistan open market on January 28, 2023 (Saturday).

Source: Forex Association of Pakistan. (last update 09:00 AM)

Currency Symbol Buying Selling
US Dollar ‎USD 263.9 266.15
Euro EUR 275.75 278.5
UK Pound Sterling GBP 313 316
U.A.E Dirham AED 69.75 70.45
Saudi Riyal SAR 67.25 67.9
Australian Dollar AUD 178.5 180.9
Bahrain Dinar BHD 644.19 652.19
Canadian Dollar CAD 187.5 189.70
China Yuan CNY 35.71 36.11
Danish Krone DKK 35.38 35.78
Hong Kong Dollar HKD 30.94 31.29
Indian Rupee INR 2.97 3.08
Japanese Yen JPY 2.50 2.54
Kuwaiti Dinar KWD 793.10 802.15
Malaysian Ringgit MYR 57.02 57.62
New Zealand Dollar NZD 156.69 158.69
Norwegians Krone NOK 24.46 24.76
Omani Riyal OMR 629.39 637.39
Qatari Riyal ‎QAR 66.54 67.24
Singapore Dollar SGD 184.38 186.38
Swedish Korona SEK 25.31 23.81
Swiss Franc CHF 263.01 265.51
Thai Bhat THB 7.38 7.53

KARACHI – The price of a single tola of 24-karat gold in Pakistan is Rs204,100 on Saturday. The price of 10 grams of 24k gold was recorded at Rs174,990.

Likewise, 10 grams of 22k gold were being traded for Rs157,300 while a single tola of 22-karat gold was being sold at Rs 178,500.

Note: The gold rate in Pakistan is fluctuating according to the international market so the price is never been fixed. The below rates are provided by local gold markets and Sarafa Markets of different cities.

City Gold Silver
Lahore PKR 204,100 PKR 2,220
Karachi PKR 204,100 PKR 2,220
Islamabad PKR 204,100 PKR 2,220
Peshawar PKR 204,100 PKR 2,220
Quetta PKR 204,100 PKR 2,220
Sialkot PKR 204,100 PKR 2,220
Attock PKR 204,100 PKR 2,220
Gujranwala PKR 204,100 PKR 2,220
Jehlum PKR 204,100 PKR 2,220
Multan PKR 204,100 PKR 2,220
Bahawalpur PKR 204,100 PKR 2,220
Gujrat PKR 204,100 PKR 2,220
Nawabshah PKR 204,100 PKR 2,220
Chakwal PKR 204,100 PKR 2,220
Hyderabad PKR 204,100 PKR 2,220
Nowshehra PKR 204,100 PKR 2,220
Sargodha PKR 204,100 PKR 2,220
Faisalabad PKR 204,100 PKR 2,220
Mirpur PKR 204,100 PKR 2,220

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