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Gulf Today
10-05-2025
- Business
- Gulf Today
Emirates Airline staff to get 22-week pay as bonus after record profit
Long-haul carrier Emirates reported on Thursday that it earned annual profits of $5.2 billion (Dhs22.7 billion), with the state-owned firm declaring itself the world's most profitable airline as global aviation fully returned to flight after the disruption caused by the coronavirus pandemic. The profits came as the Dubai-based carrier served 53.7 million passengers out of its hub of Dubai International Airport, compared to 51.9 million passengers in the fiscal year prior. It had aftertax profits of $4.7 billion that same period. The overall Emirates Group, owned by Dubai's sovereign wealth fund known as the Investment Corporation of Dubai, saw annual profits of $5.6 billion, compared to $5.1 billion the year before. "Our excellent financial standing enables us to continue building on and scaling up from our successful business models,' said Sheikh Ahmed bin Saeed Al Maktom, Emirates' chairman and chief executive. "While some markets are jittery about trade and travel restrictions, volatility is not new in our industry," he said. "We simply adapt and navigate around these challenges.' About 121,000 workers at the overall Emirates Group separately received word they'd receive a bonus worth 22 weeks of their annual salary. In 2024, they received a 20-weeks bonus. Emirates' financial year runs from April 1 to March 31, including revenue from both 2024 and 2025. This past fiscal year marked the first for the company to be charged with the United Arab Emirates' new corporate tax of 9%. The carrier had revenues of $34.9 billion, compared to $33 billion the year prior. Those revenues put it behind other private carriers, like Atlanta-based Delta Air Lines Inc., which led the industry with revenue of $61.6 billion last year. However, Emirates' $5.2 billion in profit put it to the front of the pack. Emirates operates hand-in-glove with Dubai International Airport, flying at all hours from a hub in a country where unions are illegal. Falling crude oil prices also aids its profits, like other airlines. The carrier said its 260 aircraft fly to 148 locations around the world. It has long relied on the Boeing 777 and the double-decker Airbus A380, though it has also begun introducing the Airbus A350 to its schedule. It's undertaking a multibillion-dollar retrofitting campaign for its aircraft and says it doesn't expect its first Boeing 777-9 until 2027. Emirates serves as a crucial link in East-West travel and is the crown jewel of what experts and diplomats refer to as "Dubai Inc.' - a series of interconnected companies overseen by the sheikhdom's ruling Al Maktoum family. The Emirates Group accounts for around 15% of Dubai's entire gross domestic product in 2023, and includes coffee shops, restaurants, liquor sales and other industries. "Emirates is not just a transport company; it is a tool for economic transformation for the UAE, a strategic bridge connecting the world's continents and a developmental carrier flying us through the skies toward the future,' wrote Dubai's ruler, Sheikh Mohammed bin Rashid Al Maktoum, on the social platform X. The Emirates' results track with those for its base, Dubai International Airport. The world's busiest airport for international travelers had a record 92.3 million passengers pass through its terminals in 2024. The airport now plans to move to the city-state's second, sprawling airfield in its southern desert reaches in the next decade in a project worth nearly $35 billion. A real-estate boom and the city's highest-ever tourism numbers have made Dubai a destination as well as a layover. However, the city is now grappling with increasing traffic and costs, pressuring both its Emirati citizens and the foreign residents who power its economy. As one of seven hereditarily ruled, autocratic sheikhdoms that make up the UAE, Dubai provided Emirates with around $4 billion in a bailout at the height of the pandemic. In its report on Thursday, Emirates said that it had repaid $3.6 billion of that loan.
Gulf Today
09-05-2025
- Business
- Gulf Today
Sheikh Mohammed congratulates Emirates Group after it achieves record Dhs22.7b profit
Emirates Group has achieved record levels in net profit, revenue, earnings before interest, taxes, depreciation, and amortisation (EBITDA), and cash balances for the financial year 2024-2025. At the end of the financial year on 31st March 2025, Emirates Group recorded a record profit before tax of Dhs22.7 billion ($6.2 billion), an 18 per cent increase compared to the previous financial year, and record revenue of Dhs145.4 billion ($39.6 billion), an increase of 6 per cent compared to the previous financial year. The Group reported a record cash balance of Dhs53.4 billion ($14.6 billion), up 13 per cent from the previous year, and achieved the highest-ever EBITDA of Dhs42.2 billion ($11.5 billion), a 6 percent increase over the previous financial year, reflecting strong operating performance. The Group announced a dividend of Dhs6.0 billion ($1.6 billion) to its owners, the Investment Corporation of Dubai. His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, took to his X platform to congratulate the group. "We congratulate the 121,000 members of the Emirates Group team, led by Sheikh Ahmed bin Saeed and Sir Tim Clark. The Emirates Group soars as always, becoming the world's most profitable airline group with annual profits exceeding Dhs22 billion and revenues of Dhs 145 billion," Sheikh Mohammed wrote on X. "Emirates is not just a transport company; it is a tool for economic transformation for the UAE, a strategic bridge connecting the world's continents, and a developmental carrier flying us through the skies toward the future," Sheikh Mohammed said further. This exceptional performance reflects Emirates Group's status as the most profitable aviation group globally during the reporting period of 2024-2025, achieving the best financial results in its history, making it the world's most profitable airline. Both Emirates Airline and dnata reported record revenues in 2024-2025, as the Group continued expanding its operations worldwide to meet strong and growing customer demand for its high-quality products and services. This financial year marks the first application of corporate income tax in the UAE, which was introduced in 2023 and applied to Emirates Group. After accounting for the 9 per cent tax rate, the Group's net profit after tax reached Dhs20.5 billion ($5.6 billion). Emirates Airline solidified its position as the world's most profitable airline, recording a record profit before tax of Dhs21.2 billion ($5.8 billion), a 20 per cent increase compared to the previous financial year. The airline also achieved record revenue of Dhs127.9 billion ($34.9 billion), an increase of 6 per cent over the previous financial year. Its cash balance reached a record Dhs49.7 billion ($13.5 billion), a 16 per cent increase compared to the previous financial year. dnata also reported record profit before tax of Dhs1.6 billion ($430 million), an increase of 2 per cent compared to the last financial year. dnata's revenue reached a record Dhs21.1 billion ($5.8 billion), an increase of 10 percent from the previous year. Sheikh Ahmed Bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, said, "Emirates Group is proud to continue playing its vital role in supporting Dubai's vision and enhancing its status as a global hub for trade and travel, guided by the ambitious vision of Sheikh Mohammed, with ongoing support from Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai, and Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance." Sheikh Ahmed added that the emergence of successful global aviation entities from Dubai, such as Emirates Airline and dnata, was not a coincidence, but rather the result of a forward-looking vision, systematic planning, and integrated institutional support, making Dubai's aviation sector a global force thanks to the wise leadership's vision and the coordinated efforts of Dubai's institutions and their partners at local and international levels. He explained that when the Government of Dubai established Emirates Airline 40 years ago and began developing dnata's capabilities to support the city's growth plans, the mission was clear: to be the best at what they do, delivering real value to Dubai, its shareholders, and the communities they serve. He said, "With this in mind, we have remained committed to a business model based on operational excellence, continuous investment in technology and human capital, and providing products and services that deliver real value to customers and markets we serve. These principles, along with Dubai's supportive environment, have provided a strong foundation for Emirates Group, enabling it to maintain its competitiveness and resilience in the face of various geopolitical and economic challenges over the past decades. "We do not pursue short-term gains at the expense of business sustainability but continue building with a calculated approach to ensure long-term impact, reflecting our responsibility towards our employees, partners, and the communities we operate in.' He added that the strong performance achieved by the Group this year reflects a clear commitment to a defined path, driven by the efficiency of its teams, which formed the basis for another exceptional year of record results, the trust of its customers and partners, and its continuous investment in a sustainable and innovative business model. The Group will continue to build on these achievements to support Dubai's and the UAE's strategic goals. Sheikh Ahmed stressed that the Emirates Group achieved new record results in the financial year 2024-2025 in terms of profit, revenue, and cash balances, reflecting the efficiency and resilience of its operating model in responding to market changes. Emirates Airline and dnata successfully met the growing demand for air transport services across various markets, supported by continuous investments in human capital, enhanced partnerships, and the development of products and services that meet customer expectations, consolidating their leadership in the industry. WAM
