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Dnata travel division revenue soars as Emirates Group returns to profit

Dnata’s travel division saw an improved performance as parent company Emirates Group reported a record first half as global Covid restrictions eased.

A strong recovery of travel demand and bookings in Dnata’s Middle East and UK businesses largely drove divisional revenue of $323 million, up 708% compared to $40 million in the same period last year.

The division reported an underlying total transactional value sales of $1.3 billion, against $198 million a year earlier.

The overall Dubai-based group turned around a loss of $1.6 billion into a record net profit of $1.2 billion in the six months to September 30.

Emirates airline carried 20 million passengers in the half year, up 228% year-on-year as capacity returned. 

The airline was operating passenger and cargo services to 140 airports, utilising its entire Boeing 777 fleet and 73 A380s by the end of September.

The recovery was driven by strong passenger demand for international travel “and shows the airline’s ability to plan ahead to meet the demand, activate capacity, and attract customers with its high-quality products and value proposition,” according to the group.

The airline achieved a record profit of $1.1 billion against last year’s loss of $1.6 billion. 

Despite unfavourable currency exchange, Emirates revenue, including other operating income, of $13.7 billion was up 131% compared with $5.9 billion recorded during the same period last year.

Emirates airline and group chairman and chief executive Sheikh Ahmed bin Saeed Al Maktoum said: “The group expects to return to our track record of profitability at the close of our full financial year.”

He described the half year performance as being the result of forward planning, “agile business response, and the efforts of our talented and committed workforce”.

He added: “Across the group, our operations recovery accelerated as more countries eased and removed travel restrictions. 

“We were ready and amongst the first movers to serve the strong customer demand thanks to our robust business plans, the support of our industry partners, and our ongoing investments in people, technology, and products and services.

“For the coming months, we remain focussed on restoring our operations to pre-pandemic levels and recruiting the right skills for our current and future requirements. 

“We expect customer demand across our business divisions to remain strong in H2 2022-23. 

“However, the horizon is not without headwinds, and we are keeping a close watch on inflationary costs and other macro-challenges such as the strong US dollar and the fiscal policies of major markets.”

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