Published: Monday, May 13, 2020
DUBAI, United Arab Emirates – The long-haul airline Emirates reported Monday that it will make a record profit of $4.7 billion by 2023. This is after the airline has fully taken flight following the turbulent years caused by the coronavirus outbreak.
Emirates, which is owned by Dubai’s government, reported revenues of $33 Billion, up from $29.3 Billion the previous year. Profit for the previous year was $2.9 billion.
In 2023, the airline transported 51.9 million passengers compared to only 43.6 million in the previous year.
In a press release, Sheikh Ahmed bin Saeed Al Maktoum said that the company had seen a high demand in the past year for travel and air transportation services.
“We are reaping benefits of years of nonstop investment in our products, services, building strong partnerships and the capabilities of talented people.”
Sheikh Mohammed Bin Rashid Al Maktoum praised the airline and noted that it “took flight 39 years ago, and the aviation world is no longer as it used to be.”
“God willing, what is coming will be even more beautiful, bigger and better,” wrote Sheikh Mohammed on the social media platform X.
The Emirates’ performance is in line with that of its home airport, Dubai International Airport. Last year, the world’s busiest international airport had 86.9 millions passengers. This was higher than numbers in 2019 and just before the pandemic of coronavirus grounded all global aviation. In 2018, the airport saw 89.1 millions passengers, its busiest year ever before the coronavirus pandemic.
In the next 10 to 15 years, the airport will move to the second and sprawling airfield of the city-state in its southern desert region. The project is estimated to cost around $35 billion.
Emirates Group as a whole, which includes travel agency dnata as well as holdings in food, beverage, and leisure, reported profits of $5 billion on revenues of $37.4 Billion.
The group paid a $1 billion dividend to the Investment Corporation of Dubai (the sovereign wealth fund of the sheikhdom). According to an internal message sent to employees seen by The Associated Press, the group also paid 20 weeks of bonus pay to its 112,000 employees.
At the height of pandemic, the city-state, which is one of seven autocratic, hereditarily-ruled sheikhdoms in the United Arab Emirates (UAE), provided a $4 billion bailout to Emirates. In its annual report, Emirates reported that it had repaid $2.6billion of the loan in the previous financial year.
Emirates announced in November a deal worth $52 billion to buy 90 Boeing 777s, of which 55 were 777-9s and 35 777-8s. Emirates will add five additional 787 Dreamliners on top of its 30 aircraft order.
Emirates relies on the Boeing 777, and the Airbus A380 double-decker to transport passengers around the globe. Emirates will start flying the Airbus A350 in September.
The airline is also launching a retrofitting program worth $2 billion for its aircraft.
The carrier still faces challenges. Saudi Arabia is planning to enter the market through Riyadh Air. This new carrier made a deal with Boeing worth around $37 billion last year, with Saudia’s flagship carrier.
Another concern is climate change. The UAE as a whole experienced its heaviest rainfall on record last month. This caused Emirates flights to be disrupted for several days.
Source: ABC News