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Today, the Emirates Group announced its results for the first six months of the current fiscal year 2021-2022.
Emirates Group revenue reached 24.7 billion dirhams (US $ 6.7 billion) for the first half of the current fiscal year, an increase of 81% compared to the same period last year, during which revenues reached 13.7 billion dirhams ($ 3.7 billion). This strong revenue recovery resulted from the easing of worldwide travel restrictions and continued strong demand for air freight, as well as rapid progress in Covid-19 vaccination programs.
For the first half of fiscal year 2021/2022, the Emirates Group recorded a loss of 5.7 billion dirhams ($ 1.6 billion), a significant improvement over last year, which lost 14.1 billion dirhams ($ 3.8 billion). The Group continued to maintain healthy cash balances of 18.8 billion dirhams ($ 5.1 billion) on September 30, 2021, compared to 19.8 billion dirhams ($ 5.4 billion) on March 31, 2021.
His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive Officer of Emirates Airline and Group, said: “We have begun our current fiscal year with the unprecedented launch of COVID-19 vaccination programs worldwide. Across the group, we have seen an increase in operations and demand, with most countries easing travel restrictions This momentum accelerated over the summer as growth continued in the winter and beyond.his previous status Although we still have a long way to go. A way to go before we return our operations to pre-pandemic levels and return to profitability, we are moving forward on the path to a good income and strong cash balance at the end of the first half of 2021/2022 . ”
His Highness Sheikh Ahmed bin Saeed Al Maktoum thanked the clients for their continued support, as well as all relevant authorities and partners in the aviation and travel industry for their efforts that allowed the smooth and safe resumption of international air travel. His Highness added: “Our ability to adapt during the most difficult period of our history to date is due to the strength of the Emirates brand and dnata, the high quality of our products and services, digital and innovative capabilities and employees We are determined to continue investing in these essential areas to move.
Emirates Group was able to take advantage of strong cash balances and access to finance through its owners and the wider financial community to support its business demands amid the unprecedented challenges posed by Covid-19 in aviation and travel industry. During the first half of 2021/2022, the owners injected 2.5 billion dirhams ($ 681 million) into Emirates Airlines by investing in shares and they continue to support the airline on its path to recovery.
The number of employees in the Emirates Group decreased slightly compared to March 31, 2020, by 2% to 73,571 employees on September 30, 2021. In line with the expected increase in capacity and business activities in the coming months, Emirates Airlines and dnata launched Campaigns of international recruitment to support its requirements, with priority given to the reinstatement of employees who have previously been laid off or have been laid off.
Emirates Air Travel
During the first six months of the current financial year, Emirates acquired two new A380s and retired two aircraft as part of its long-term strategy to continue fleet modernization, efficiency improvements, emissions reductions and customer experience. high quality.
As part of its efforts to restore the passenger network and resume flights through its Dubai hub, Emirates continued to respond flexibly and quickly to the removal of travel restrictions, the resumption of services or the addition of more flights. . In July, it launched a new service in Miami and during the first half of 2021/2022 also activated code-sharing and airline agreements with Airlink, Aeromar, Azul, Simir and South African Airways to expand forward travel options for customers .
As of September 30, Emirates was operating passenger and freight flights to 139 airports, using its entire fleet of Boeing 777s and 37 A380s.
Emirates continued to launch initiatives to improve the travel experience, increase customer confidence, and enable safer and more efficient operations. In June, it became the first carrier to participate in the global IATA passport application, in addition to its ongoing investment in additional biometric and digital verification technologies at Dubai International Airport.
Emirates Airlines has reopened more private lounges and chauffeur services to accommodate its first-class and business-class customers and members of the loyalty reward program at major airports outside Dubai. He also launched an online subscription platform, Skywards +, to make it easier for the program’s 27 million members to receive special rewards and privileges quickly and easily.
During the first six months of the fiscal year, total capacity, measured in available tonnes, multiplied by ATKM, increased by 66% to 16.3 billion tonnes available, thanks to the significant increase in the number of scheduled flights in recent months. and presentation. of more countries of the world to ease travel restrictions. Passenger capacity, measured in kilometers of available seats, multiplied by ASKM, more than doubled by 250%, and passenger traffic, measured in revenue per passenger kilometer (RPKM), increased by 335%, while availability of seats recovered to 47.9% compared to last year. 38.6% in the last pandemic year.
During the period from April 1 to September 30, 2021, Emirates Airlines transported 6.1 million passengers, an increase of 319%, compared to the same period last year. Ship volumes also increased by 39% to 1.1 million tonnes, bringing the freight business back to 90% of its pre-pandemic levels (in 2019) in terms of volume. This demonstrates the flexibility and ability of Emirates Air Cargo to meet the demands of its customers, whether to transport vaccines, pharmaceuticals and basic goods, such as perishable food and articles, or champion horses and sports and luxury cars.
During the first half of fiscal year 2021/2022, Emirates SkyCargo strengthened its refrigerated cargo handling infrastructure by adding 94 container rooms in cold rooms to the existing infrastructure at Dubai International Airport, which has been approved according to EU standards. for GDP. Emirates Air Cargo continues to support the distribution of Covid-19 vaccines worldwide, as it shipped, by July 2021, more than 150 million doses of vaccine through its headquarters in Dubai.
In the first half of fiscal year 2021/22, Emirates Airlines losses amounted to 5.8 billion dirhams ($ 1.6 billion), compared to 12.6 billion dirhams ($ 3.4 billion). Emirates Airlines revenue, including other operating income, stood at 21.7 billion dirhams ($ 5.9 billion), an increase of 86% compared to the same period of the previous fiscal year, in which revenues were recorded at 11.7 billion dirhams ( $ 3.2 billion). Strong revenue recovery reflects the rapid return of demand from passengers to and from any destination once restrictions on flights and travel around the world are eased.
Emirates operating costs increased by 22% with total capacity increased by 66%. Fuel costs have more than doubled compared to the same period last year. This is due to the 81% increase in the amount of fuel used as a result of the significant increase in air operations during the six months to the end of September, in addition to the increase in the price of oil. Fuel, which accounted for the largest percentage of operating costs in the years before the pandemic, accounted for 20% of operating costs in the first six months of the fiscal year, compared with 11% in the same period a year earlier.
The Emirates Airlines EBITDA standard recovered to 5 billion dirhams ($ 1.4 billion), compared to 290 million dirhams ($ 79 million) for the same period a year earlier, thanks to a significant increase in operations. (EBITDA is a measure of a company’s performance and is an indicator of operating profitability, ie the income a company earns from its assets and operations before interest, taxes, depreciation and amortization).
Demand for land handling, hospitality, travel services, merchandise and retail businesses dnata has seen a rapid return with easing restrictions on pandemic flights and travel. With the flexibility and capabilities of its teams, dnata has been able to respond quickly to customer requests and provide quality services as usual, by supporting its airline customers to resume operations smoothly and safely. , to help customers book their long-awaited postponed trips.
dnata has also continued to invest in infrastructure to serve its global customers more efficiently. During the first six months of fiscal year 2021/22, it opened a 5,000-square-foot facility dedicated to providing advanced maintenance for passenger buses at Dubai International Airport.
Daily income, including income from other operations, amounted to 3.7 billion dirhams ($ 1 billion), an increase of 55% compared to revenues for the same period a year earlier, which was 2.4 billion dirhams ( $ 644 million).
The total profit of the day reached 85 million dirhams ($ 23 million), compared to a loss of 1.5 billion dirhams ($ 396 million).
dnata Airport Operations maintained its position as the largest contributor to dnata revenue, reaching 2.5 billion dirhams ($ 688 million), a 54% increase over the first six months of last fiscal year. The total number of aircraft handled by dnata in all its operating locations increased significantly by 116% to 222,668 aircraft and shipments handled amounted to 1.4 million tonnes, an increase of 9% compared to the same period last year.
The contribution of catering and retail activities dnata to total revenues amounted to 766 million dirhams ($ 209 million), an increase of 80%. The number of meals served during the first six months was 16.6 million, compared to 8.3 million meals last year.
The dnata travel division’s contribution to revenue amounted to 147 million dirhams ($ 40 million), compared to 95 million dirhams ($ 26 million), an increase of 55% compared to the same period a year earlier. The department recorded a total of TTV core transactions worth 726 million dirhams ($ 198 million), compared to the value of the extremely negative TTV transactions of 246 million dirhams ($ 67 million) for the same period last year, as a result of the return of large sums. customers who canceled their bookings with the onset of the 2020 pandemic.
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