Emirates is to pay staff a bonus worth fives months of their basic wage after the Dubai-based airline posted a second straight year of record profits on Monday.
The Emirates Group, which includes its namesake airline as well as a number of other businesses, including the worldwide Dnata grounding handling company, posted a record-breaking $5.1 billion profit on revenue of $37.4 billion.
The company said its best-ever financial results were driven by continuing strong travel demand, as well as Dubai’s “progressive policies” that have turned Dubai into not just a transit stop but a hugely popular destination in itself.
Emirates Airline said its record profit of $4.7 billion for 2023 was driven by a “voracious appetite for travel across customer segments”, as well as slightly lower fuel costs.
Passenger numbers surged by 19% to 51.9 million passengers year-on-year, although that also resulted in passenger yield (the amount of money made per passenger) dropped by 2%.
“We are reaping the benefit of years of non-stop investments in our products and services, in building strong partnerships, and in the capabilities of our talented people,” commented Emirates’ chairman and CEO Sheikh Ahmed bin Saeed Al Maktoum after the financial results were published.
“The Group’s excellent financial standing today places us in a strong position for future growth and success. It enables us to invest to deliver even better products, services, and more value to our customers and stakeholders,” Sheikh Ahmed continued.
Part of that investment will include taking delivery of 10 new Airbus A350-900 aircraft over the next year, with the first A350 set to enter commercial service in September.
The airline has also recently announced plans to significantly expand a cabin upgrade programme, with an additional 71 Airbus A380s and Boeing 777s set to receive refreshed interiors, including brand-new Business Class seats.
Looking forward, Sheikh Ahmed remains optimistic, and the airline doesn’t yet see any signs that travel demand is going to wane as many industry observers have feared.
Nonetheless, the airline said it would retain a “close watch on costs and external factors such as oil prices, currency fluctuations, and volatile environments caused by socio-political change”.
Sheikh Ahmed added: “Our business model has been tested before, and I am confident in our resilience and ability to respond quickly to opportunities and challenges.”
The airline did not discuss the recent severe weather that hit Dubai and the ensuing floods that heavily disrupted Emirates’ operations. That event could have an impact on next year’s financial performance, as well as future weather events.
Despite the record-breaking profit, staffers are set to receive a sightky smaller bonus compared to last year when the airline paid a profit-share worth six months of basic wages. That bonus was, however, so big because Emirates hadn’t been in a position to offer a bonus since 2018.
