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Khaleej Times
22-05-2025
- Business
- Khaleej Times
How Emirates went from underdog to the world's most profitable airline
A true pioneer, Boutros Boutros joined Emirates 35 years ago, when the airline was still in its infancy, long before it was named the world's most profitable airline, reporting record profits of Dh21 billion this month. The Executive Vice President, Corporate Communications, Marketing & Brand at Emirates Group, knows how bold a move launching the airline was but sees it reaping the rewards as a global industry leader. Hired in 1991, six years after Emirates was born — and a decision he now says is the best he made in his life — the airline had just seven aircraft and 11 destinations. 'Nobody took us seriously,' he smiles, speaking to Khaleej Times as a keynote speaker at the TRIBE marketing summit earlier this month. But while the world was laughing, mocking the project as an oil-backed fantasy, the Emirates leadership took the airline to the world stage and in turn, helped bring the world to Dubai. 'We're different, that's why we are successful,' he says. 'I remember in 1992, we were the first airline in the world to introduce in-flight entertainment with a screen in every seat, including economy. People across the industry laughed at us, at everything we did, all the way.' 'They assumed, 'Oh, [they don't know what they're doing] — they just have money; it's an oil company.' And I've spent the last 35 years correcting that: Dubai doesn't have oil, so let's stop calling it oil money,' he adds, reflecting on the scepticism that once surrounded the rise of an airline from a small Gulf state. He first came to Dubai in 1989 to attend the inaugural air show as a journalist. 'What I saw then and the people I met, I could see this place was only going to go from good to better,' he recalls. 'I was fortunate enough to have the courage to move from the UK, where I used to be a journalist, and to join Emirates. I always say it, I believed a lot in Dubai, its vision and the Emirates project.' Joining Emirates, he could not have known that the department he would later lead, would become a key pillar for the company, which would take the airline from aviation into the likes of sports sponsorship, bringing global stars from Jennifer Aniston to Cristiano Ronaldo to be the face of viral campaigns seen by millions across the globe. 'In 1985, the brief from His Highness Sheikh Mohammed, was, be good, look good and make money. And when he handed the first and last check of $10 million, he told them, this is your money, but don't come back for more,' he smiles. It was a challenge the team took with both hands and now Emirates is the most profitable airline in the world. According to the latest figures, the company reported record profits before tax of Dh21.2 billion (US$ 5.8 billion), up 20 per cent from last year, record revenues of Dh127.9 billion (US$ 34.9 billion), an increase of 6 per cent over last year, and the highest-ever level of cash assets at Dh49.7 billion (US$ 13.5 billion), 16 per cent higher compared to March 31, 2024. This is all in spite of the setbacks of a pandemic which closed the skies in the worst crisis to ever hit global aviation. Sheikh Mohammed publicly congratulated the team after the results, which seemed like a mere dream when the company was first taking flight. 'We congratulate the 121,000 members of the Emirates Group team, led by Sheikh Ahmed bin Saeed and Sir Tim Clark … 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, towards the future.' Indeed, more than simply taking passengers from A to B, the airline has made its DNA all about offering a service, from outstanding call centre staff and cabin crew training to free in-flight entertainment in economy class before any other airline. First, starting with sponsorship of Chelsea Football Club in London, the brand has become so famous globally that just 3 per cent of its spend goes on marketing, versus averages of 3-7 per cent across the market. The Emirates name appears on the shirts of the world's top athletes and on stadiums across the globe. From rugby and cricket to the NBA, horse racing, tennis, and football — these sports are now closely linked with the Emirates brand, which allocates 50 per cent of its marketing budget to sports sponsorship. 'We strongly believe that sponsorship is one of the mediums, which can stand the test of time and give you exclusivity. What stays and what stands is sponsorship, so for us, it was a no-brainer to go and own every single popular sport,' he said at the event attended by the region's CMOs and top marketing professionals. In addition to athletes, global stars such as Penelope Cruz and Chris Hemsworth have also been key players in the brand going global. Onboarding Friends star Aniston however, was not such an easy project. While she is a sitcom icon, who has gone on to star in numerous hit movies, the Emirates ad agency was not convinced she was a global enough name, claiming the likes of the Indian market would not know her. But trusting the concept, Boutros and his team forged boldly forward, investing $150m in the campaign, which has been seen by millions around the world. 'When you want to put $150 million behind a global campaign, you need to have the courage to go and say, 'Yes, go ahead and do it'. I'm fortunate enough I work in a company where we are trusted to do our job,' he said. Production alone cost $10 million, so Boutros knew the campaign 'had to succeed'. But looking back, he says, it's not the most successful campaign to date. 'I think the most effective campaign was the lady on the top of Burj Khalifa,' he said, referring to the daring ad for Expo 2020 Dubai, which saw a female cabin crew member at the top of the world's tallest tower to welcome people for 'the world's greatest show'. Originally created for social media with a modest budget of just Dh60,000, the campaign was later recreated as a full-scale ad, featuring a specially branded aircraft making 11 flybys — a spectacle that has since amassed nearly 300 million views. 'This is something which was beyond anybody's expectation,' he adds. And it is not only other airlines that the brand is competing with, in today's crowded digital space, there are all sorts of brands vying for air time across a wealth of social platforms. 'You probably have a billion brands competing for this small space of digital on Facebook, on Instagram, on YouTube, and this space is available for anybody. So, you have to be much better than them to take this space,' he says. Emirates now flies to over 150 destinations, but it is no secret that the company's success has also helped thrust Dubai onto the global stage, now ranking among the world's most visited cities. Dubai was the third most visited city in the world in 2023 with 17 million international visitors according to Euromonitor International and in the same year Dubai was crowned the top global destination in the Tripadvisor Travelers' Choice Awards, for a second successive year. 'You have to be global to become global,' he says. 'We need to continue to be creative and progressive and, most importantly, stay curious.'
Business Recorder
22-05-2025
- Business
- Business Recorder
Emirates will operate 46 extra flights for Hajj, Eid Al Adha
Dubai's Emirates airline said it is ramping up its operations for this year's Hajj season, with 33 special flights to Jeddah and Medina operating until 31st May and between 10th and 16th June to support thousands of pilgrims. Emirates will be transporting nearly 32,000 Hajj passengers over the next three weeks from key points within its network, like the USA, Pakistan, Indonesia, South Africa, Thailand, and Côte d'Ivoire. Private Hajj Scheme: JI urges PM to contact MBS Emirates will also operate 13 more flights to/from regional destinations, including Amman, Dammam, Kuwait and Bahrain, to meet high demand during the Eid Al Adha period. Earlier this month, Emirates reported a record full-year profit, boosted by strong international travel demand on major routes. This is the first financial year that the UAE corporate tax, enacted in 2023, is applied to the Emirates Group, it said. After accounting for the 9% tax charge, the Group's profit after tax was AED 20.5 billion ($ 5.6 billion) in the year ended March 31, compared with 17.2 billion dirhams a year earlier. MPs to call upon individuals involved in allocating Hajj quota to private operators 'This outstanding performance places the Emirates Group as the most profitable aviation group globally in the 2024-25 reporting period, with Emirates reporting the best result in its history to become the world's most profitable airline,' it said in a statement.
Khaleej Times
21-05-2025
- Business
- Khaleej Times
Dubai's Emirates announces record Dh22.7 billion profit
Emirates Group announced yet another annual record profit on Thursday. The Dubai-based group revealed that it recorded profit before tax of Dh22.7 billion ($6.2 billion), up 18 per cent from last year. It recorded revenue of Dh145.4 billion ($39.6 billion), up 6 per cent over last year's results, while cash assets stood at Dh53.4 billion ($14.6 billion), up 13 per cent from last year. It also registered the highest-ever EBITDA of Dh42.2 billion ($11.5 billion), up 6 per cent year-on-year. The Group declares a dividend of Dh6 billion ($1.6 billion) to its owner, the Investment Corporation of Dubai (ICD). This is the first financial year that the UAE corporate tax, enacted in 2023, is applied to the Emirates Group. After accounting for the 9 per cent tax charge, the Group's profit after tax is Dh20.5 billion ($5.6 billion). "It is no accident that Dubai has produced hugely successful global aviation entities, including Emirates and dnata. Dubai's aviation sector has become an influential force on the global stage thanks to visionary leaders, strategic planning, co-ordinated execution, and strong support from our customers, business partners, and all the people of Dubai,' said Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group. "We've kept a laser focus on providing great products and services, and we continually invest in technology and talent to increase our competitive edge. We look after our people and customers and work hard to positively impact our communities. We don't cut corners, and we don't take shortcuts that put our future at risk for short-term gains. By building our business models around these principles and Dubai's unique strengths, the Emirates Group has thrived and stayed resilient through geopolitical and socio-economic challenges over the years,' he added. During a press conference during the Arabian Travel Market (ATM) 2025 last month, Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman of Dubai Airports, and Chairman and Chief Executive of Emirates Airline and Group, told media that 2024-25 will be 'another record year' for Emirates Group. Emirates Group reported its best-ever financial performance with a record profit of Dh18.7 billion last year, up 71 per cent from the previous year. The group revenue increased 15 per cent to a new high of Dh137.3 billion, driven by strong customer demand across its businesses. It ended 2023-24 with the highest-ever cash balance of Dh47.1 billion. 'We are very satisfied when it comes to our cash reserves on the airline side,' he said. He noted that the airline also did very well when it comes to hedging fuel. In 2024-25, Emirates Group invested Dh14 billion ($3.8 billion) in new aircraft, facilities, equipment, companies, and the latest technologies to support its growth plans. Saj Ahmad, chief analyst at London-based StrategicAero Research, said Emirates full year results showcase how well the airline has worked out of the Covid-19 pandemic to restore its place as the world's most profitable airline. "Sitting atop a record cash balance of over $13.5 billion, the airlines success in overhauling its cabin products, expanding its network, deepening its partnership with flydubai and receiving new A350-900s into the fleet has meant that the airline continues to expand and capitalise on its investments across the business," Ahmad told Khaleej Times. Outlook for 2025-26 Sheikh Ahmed said the Emirates will strengthen its network connectivity with the expected delivery of 16 A350s and 4 Boeing 777 freighters in 2025-26, providing much-needed capacity to meet customer demand. 'While some markets are jittery about trade and travel restrictions, volatility is not new in our industry. We simply adapt and navigate around these challenges,' he added. 'Our retrofit programme will continue apace to provide our customers the latest Emirates products and a more consistent experience across our A380, 777 and A350 fleet.' Emirates Group chief elaborated that dnata will open new facilities in Amsterdam, Dubai and Erbil next year, which will significantly expand its cargo handling capacity and capabilities. 'Work is already underway at the new Al Maktoum International airport (DWC) and broader development around Dubai South. Our planning teams are working closely with Dubai airports and other entities to design and deliver the future of aviation and the best possible travel experiences,' he added. Emirates airline revenue Emirates airline's revenue for the financial year increased by 6 per cent to Dh127.9 billion ($34.9 billion). Currency fluctuations and devaluations in some of the airline's major markets negatively impacted the airline's profitability by Dh718 million ($196 million), the group said in a statement on Thursday. Emirates saw a record operating cash flow of Dh40.8 billion in 2024-25, which reflects its strong commercial performance and enables the airline to grow its business going forward. Total operating costs increased by 4 per cent from the last financial year, mainly due to fuel and employee costs, followed by the cost of ownership (depreciation and amortisation). Fuel accounted for 31 per cent of operating costs compared to 34 per cent in 2023-24. The airline's fuel bill decreased slightly to Dh32.6 billion ($8.9 billion) compared to Dh34.2 billion ($9.3 billion) the previous year, as lower average fuel price (down 10%), including hedging gains, offset a higher uplift of 5% from increased flying. Emirates airline hit a new record profit after tax of Dh19.1 billion, outstripping last year's Dh17.2 billion ($4.7 billion). This is the best performance in the airline's history, and in the airline industry for the reporting year 2024-25. Emirates carried 53.7 million passengers, up 3 per cent, in 2024-25, with seat capacity up by 4 per cent. By 31 March, Emirates served 148 cities in 80 countries and territories. Emirates also grew its partnerships to 33 codeshares and 118 interline partners, providing customers smooth access to over 1,750 cities beyond its network. The world's largest international carrier said that with ongoing delays in new aircraft deliveries, Emirates added 99 more aircraft to its retrofit programme, which will now see 219 aircraft go through a full cabin refresh at a total investment of $5 billion. At 31 March, Emirates' order book had 314 aircraft pending delivery, including 61 A350s, 205 Boeing 777x, 35 787s, and 13 777Fs. At the end of March, the total fleet count was 260 units, with an average fleet age of 10.7 years. Dnata increased its profit before tax by 2 per cent to Dh1.6 billion in 2024-25, with all business divisions reporting a solid performance, and notable contributions from its airport operations and catering and retail divisions. Dnata's total revenue increased by 10 per cent to hit a new record of Dh21.1 billion, driven by increased flight and travel activity worldwide, particularly in its major markets: Australia, Europe, the UAE, the UK, and the US.
Finextra
20-05-2025
- Business
- Finextra
ESG platform Novisto raises $27 million
Canada-founded sustainability reporting software company Novisto has raised US$27m in a Series C round, led by Inovia Capital, with participation from all previous investors including White Star Capital, SCOR Ventures, and Sagard. 0 The firm has now raised over $55m to date, signalling market leadership and confidence in the face of global regulatory uncertainty. Novisto's revenue has almost tripled since its last round in 2023. The funds will be dedicated to innovating upon and enhancing its pioneering sustainability platform, and to accelerating its market leadership within Europe, aligning with the region's forward-looking approach to ESG regulation. The firm aims to build a team of equal size to its North American counterpart in Europe. The Emirates Group recently signed as a client, adding to the growing list of global companies taking ownership of their sustainability reporting via Novisto. Using Novisto's data consolidation and disclosure mapping capabilities, France-headquartered healthcare giant Sanofi produced one of the first 15 CSRD-compliant reports released earlier this year. Sanofi has been an early leader in sustainability strategy and data management. 'Sanofi is taking on some of the world's most pressing challenges to build a healthier, more resilient world. Our partnership with Novisto has accelerated our journey towards our first CSRD aligned disclosures; and has established new standards for data governance and data quality', said Laurent Lhopitalier, Head of ESG at Sanofi. Novisto has joined global technology company SLB's Digital Platform Partner Program, giving a network of customers access to its platform and supporting their broader ESG reporting needs beyond the greenhouse gas (GHG) solutions it already offers. Other prominent distribution partners include S&P Global, which offers the reporting solution to their own network of clients. Novisto's platform enables companies to efficiently and securely collect, manage, approve, disclose and defend their sustainability data, all in one place. Clients have quoted improved data quality, stakeholder confidence, and a reduction in time to complete reporting assessments of 50%. The EU's Omnibus regulatory proposals bring to light the urgent need for streamlining, and the administrative strain for companies and investors alike, which Novisto exists to alleviate. Charles Assaf, CEO and Co-founder, Novisto, says, 'We have seen that forward-thinking leaders are not waiting for full policy clarity to act on sustainability reporting and ESG compliance: they are acting now. The market demands it of a leading organisation, and it encourages transparent, accurate and decision-grade sustainability information. We see a huge and growing global opportunity in front of us, underpinned by our current momentum, and spearheaded by senior leaders at global companies who are committed to making their businesses more resilient and sustainable." Acting on the groundswell of green reporting activity, Inovia recognised an early opportunity in Novisto to lead the European ESG zeitgeist, and moved decisively. Inovia Principal, Mia Morisset, says: 'Novisto is trusted by leading global enterprises, a testament to the strength of its best-in-class product. Since its Series B, we've had the opportunity to witness firsthand how Charles and his team have built a uniquely positioned solution for success. We look forward to continuing to support Novisto as it scales.' The State of ESG Regulation in The EU In the wake of some green policy uncertainty, The EU's recent Omnibus package will simplify and consolidate requirements for the Corporate Sustainability Reporting Directive (CSRD) and others, while upholding a 'firm' focus of accountability on the largest organisations: the 20% deemed likely to have 'the biggest impacts on people and the environment'. These regulations, including EU Taxonomy and CSDDD, pertaining to general sustainable finance reporting have been broadly experienced as highly burdensome -- on a par with financial statement reporting. Novisto is bolstering its European GTM strategy to support the captaincy of Europe's largest firms, in a region at the forefront of progressive policy.
Khaleej Times
20-05-2025
- Business
- Khaleej Times
Emirates airline aims to create jobs, build wealth for Dubai, says top official
Dubai-based Emirates' objective is to build an airline and make money, create jobs, and wealth for the city, said Boutros Boutros, executive vice president, corporate communications, marketing and brand at Emirates Group. While speaking during the TRIBE – The CMO Connect 2025 event hosted by Khaleej Times, Boutros said Dubai's flagship carrier is run like a private entity, rather than a government firm. "We don't have a board of directors and shareholders who come every three months, and we have to produce enough figures to keep our jobs. This is a strength for us. This is a strength because our motive is not only to make money. We have to be profitable, but more than profitable, to build an airline; it is to create jobs and wealth for the city. Stay up to date with the latest news. Follow KT on WhatsApp Channels. "This mentality doesn't exist in many other companies, because we are a unique company in terms of ownership. It's run like a private company, not run as a government," Boutros said during a fireside chat on "Marketing Beyond Borders: How a Homegrown Brand Became Truly Global." He stressed that Emirates' success should be attributed to teamwork and the environment it provides to its employees. "Emirates is a unique airline for a unique city. You cannot say it's a Dubai company. It's a global company. We cater for everybody." Key highlights of TRIBE – The CMO Connect 2025 were the exclusive announcement of the GCC's Most Influential Marketing Leaders, recognising excellence, innovation, and leadership in the field. The summit also featured a networking lunch, providing opportunities for attendees to foster strategic partnerships and engage with top marketing visionaries. Loan repaid Last week, Emirates said its 2024-25 revenues increased by 6 per cent to Dh127.9 billion ($34.9 billion). The world's largest international carrier hit a new record profit after tax of Dh19.1 billion, outstripping last year's Dh17.2 billion ($4.7 billion). This is the best performance in the airline's history, and in the airline industry for the reporting year 2024-25. "We have been the most profitable airline for the last three years. After the pandemic, we repaid the loans to the government. We were running a tight, good operation (during Covid-19). To be honest, this would not have happened if we were in another country. A lot of people ask why the Emirates is so successful. It is because we are in Dubai. Of course, this is one of the major reasons, and a huge part of Dubai's and the UAE's growth story," said Boutros. Dubai's flagship carrier obtained billions of dollars in loans from the government due to the coronavirus pandemic as the aviation industry came to a halt due to the pandemic. Going from good to better An industry veteran, Boutros relocated from the UK in 1991 to join Emirates. 'We had just seven aircraft and 11 destinations. It was a small airline; nobody took us seriously. I was fortunate enough to have the courage to move from the UK to join the Emirates. I came to Dubai for the first time in 1989, and I could see this place only going from good to better. I strongly believed in Emirates and the vision of Dubai,' he said during a fireside chat with Michal Divon, chief client officer, Khaleej Times. He added that Emirates' strategy is parallel to Dubai's strategy. 'From day one, Emirates management knew that they needed to provide the experience. We, as an airline, carry people from place A to B. But then every other end line does the same. But we are different and that's why we are successful.' Citing an example, he said in 1992, Emirates was the first airline in the world to introduce in-flight entertainment. Smart spending Butrous dismissed the general impression that Emirates spends a huge amount of money on marketing. Instead, he stressed that the airline spends much less than the market rate on marketing, 'In reality, our spending is less than 3 per cent of our total revenue. In our industry, you need to spend between 3 to 7 per cent of your total revenue on marketing. Sometimes I'm challenged internally by our financial department, that I take 3 per cent. This year, my budget is 2.4 per cent. So you have to be smart about how to spend it. Because if you are doing something right, people think we have so much money to spend. In reality, we spend much less. But it seems it's working,' said the executive vice president of corporate communications, marketing and brand at Emirates Group. Contrary to current times when sports and other companies willingly embrace big brands on their shirts, he noted that it was quite a challenge for people to convince to embrace aviation brands on the players' shirts.
