Dubai airline group records major revenue gain as worldwide travel need returns Emirates Group said significant progress in bringing down losses, while revenues were up 86 percent to Dh66.2 billion for 2021-22.
After the extensive COVID-19 made disruptions in 2021 and which extended well into last year, Emirates airline brought about a massive reduction in losses to Dh3.9 billion compared to Dh20.3 billion the year before.
The airline’s revenues are up 91 percent to Dh59.2 billion helped by a faster return to its pre-Covid capacity and the reinstating of more passenger flights. The airline’s ability raised by 47 percent over the year to 36.4 billion ATMs, with the final five A380 aircraft said to the fleet.
The travel services and support division dnata had a gain of Dh110 million for the year, which is quite the turnaround from the Dh1.8 billion loss a year before. (Emirates’ financial year begins April 1.)
Capital injection of Dh3.5 billion from the Dubai Government
Emirates received a further capital injection of Dh3.5 billion from the Dubai Government, and the Group tapped into various industry support programs and availed a total relief of nearly Dh800 million in 2021-22.
Emirates’ entire passenger and cargo capacity increased by 47 percent to 36.4 billion ATKMs (available tonne-kilometers) in 2021-22, as the airline continued to reinstate passenger services across its network in line with the lifting of pandemic-related flight and journey restrictions.
Emirates told it had grown operations and capacity to over 140 destinations in the reporter year. The airline was serving only 120 destinations at the start of the financial year.
“Emirates was able to respond dynamically to serve customer demand wherever opportunities arose, thanks to the resilience of its people and business model,” it expressed in a report. “In July, the airline established a new route to Miami, bringing its total passenger gateways in the US to 12.”
Chief Executive, Emirates Airline and Group
“This year, we focussed on restoring our operations fast and safely wherever pandemic-related restrictions eased across our markets,” said Sheikh Ahmed bin Saeed Al Maktoum, Chairman, and Chief Executive, Emirates Airline and Group. “Business recovery picked up the pace, particularly in the second half of the year. Robust customer need drove a huge improvement in our financial performance compared to our unprecedented losses of last year and we built up our strong cash balance.
“Across Emirates and dnata, we replied to dynamic market conditions with agility, and introduced innovative products and services to meet our customers’ requirements and provide them with the best possible knowledge.”
Increased by 13 percent over the last financial year
As Emirates and dnata ramped up, employees on furlough or made redundant were recalled or rehired, and new recruitment drives were held to replenish the workforce and boost the group’s future requirements. As a result, the entire workforce raised by 13 percent over the last financial year to 85,219 workers.
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In 2021-22, the Group collectively invested Dh7.9 billion ($2.2 billion) in new aircraft and facilities, and in the latest technologies to position the business for recovery and development. “It’s not just about restoring our capacity, but also augmenting our future capabilities as we rebuild,” told Sheikh Ahmed. “Our aim is to build back better and stronger so that we can deliver even better experiences to our customers and offer more support to the communities we serve.”
- Currency fluctuations impacted Emirates’ profitability negatively by Dh348 million.
- Entire working prices raised 30% from the last financial year. Cost of ownership (depreciation and amortization) and fuel price were the two biggest cost components for the airline in 2021-22, followed by employee price.
- Fuel accounted for 23% of operating costs compared to 14% in 2020-21. The airline’s fuel bill more than doubled to Dh13.9 billion compared to the previous year, driven by a higher uplift of 66% in line with capacity expansion and a higher average fuel cost which was up by 75%.
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