Emirates Group announces half-year performance

The Emirates Group today announced its half-year results for its 2021-22 financial year.

Group revenue was AED 24.7 billion (US$ 6.7 billion) for the first six months of 2021-22, up 81% from AED 13.7 billion (US$ 3.7 billion) during the same period last year.

This strong revenue recovery was underpinned by the easing of travel restrictions worldwide and the corresponding increase in demand for air transport as countries progressed their COVID-19 vaccination programmes. 

The Group is reporting a 2021-22 half-year net loss of AED 5.7 billion (US$ 1.6 billion), substantially improved from its AED 14.1 billion (US$ 3.8 billion) loss for the same period last year.

The Group also reported an EBITDA of AED 5.6 billion (US$ 1.5 billion), a dramatic turnaround from a negative AED 43 million (US$ 12 million) EBITDA during the same period last year, illustrating its strong return to operating profitability.

It continued to maintain a healthy cash position which stood at AED 18.8 billion (US$ 5.1 billion) on 30 September 2021, compared to AED 19.8 billion (US$ 5.4 billion) as on 31 March 2021.

"Our cargo transport and handling businesses continued to perform strongly, providing the bedrock upon which we were able to quickly reinstate passenger services. While there's still some way to go before we restore our operations to pre-pandemic levels and return to profitability, we are well on the recovery path with healthy revenue and a solid cash balance at the end of our first half of 2021-22," said His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.

Emirates Group has reported significantly improved performance in its half-year results for 2021-22, with an 81% lift in revenue as travel restrictions continue to ease worldwide. https://t.co/7ScwKQfODt (1/2) pic.twitter.com/KNNJMXoN32

— Emirates (@emirates) November 10, 2021

The Emirates Group's employee base, compared to 31 March 2021, dropped marginally by 2% to an overall count of 73,571 at 30 September 2021.

In line with the expected ramp up in capacity and business activities in the coming months, Emirates and dnata have embarked on targeted recruitment drives to support its requirements, prioritising the rehiring of employees previously on furlough or made redundant.

Emirates airline

Overall capacity during the first six months of the year increased by 66% to 16.3 billion Available Tonne Kilometres (ATKM) due to a substantially expanded flight programme as more countries eased travel and flight restrictions.

Capacity measured in Available Seat Kilometres (ASKM), more than tripled by 250%, whilst passenger traffic carried measured in Revenue Passenger Kilometres (RPKM) was up by 335% with average Passenger Seat Factor recovering to 47.9%, compared with last year's pandemic figure of 38.6%.

Emirates carried 6.1 million passengers between 1 April and 30 September 2021, up 319% from the same period last year.

The volume of cargo uplifted at 1.1 million tonnes has increased by 39%, which brings the business back to 90% of pre-pandemic (2019) levels by volume handled.

In the first half of the 2021-22 financial year, Emirates loss was AED 5.8 billion (US$ 1.6 billion), compared to last year's loss of AED 12.6 billion (US$ 3.4 billion).

Emirates revenue, including other operating income, of AED 21.7 billion (US$ 5.9 billion) was up 86% compared with the AED 11.7 billion (US$ 3.2 billion) recorded during the same period last year.

The strong revenue recovery reflects quick return of passenger demand wherever flight and travel restrictions were eased around the world.

Emirates operating costs increased by 22% against an overall capacity growth of 66%.

Fuel costs more than doubled compared to the same period last year. This was primarily due to an 81% higher fuel uplift in line with substantially increased flight operations during the six-month period up to end of September, and also an increase in average oil prices.

Fuel, which was the largest component of the airline's operating cost in pre-pandemic reporting cycles, accounted for 20% of operating costs compared to only 11% in the first six months of last year.

Driven by the significant increase in operations during the six months, Emirates' EBITDA recovered to AED 5.0 billion (US$ 1.4 billion) compared to AED 290 million (US$ 79 million) for the same period last year.

dnata

Revenue, including other operating income, was AED 3.7 billion (US$ 1 billion), a 55% increase compared to AED 2.4 billion (US$ 644 million) last year.

Overall profit for dnata is AED 85 million (US$ 23 million), compared to last year's loss of AED 1.5 billion (US$ 396 million).

With cash positive operations and a healthy cash balance during this time, Emirates Group’s resilient business model is seeing recovery across all segments, leading to AED 24.7 billion in revenue for the half-year period. https://t.co/7ScwKQfODt (2/2) pic.twitter.com/dZTRS39tc2

— Emirates (@emirates) November 10, 2021