Emirates reports record first half profit on air travel upswing

by Bloomberg Nov 09, 2023

Emirates Group, operator of the world’s largest long-haul carrier, reported a record first-half profit of 10.1 billion dirhams ($2.7 billion), buoyed by a robust recovery in international travel during the summer high season.

Earnings at the Dubai-based airline surpassed the previous record of 4.2 billion dirhams set in the six-month period to September 2022, Emirates said Thursday in a statement. Revenue rose by a fifth to 67.3 billion dirhams.

“For the second half of 2023-24, we expect customer demand across our business divisions to remain healthy,” Emirates Chairman Sheikh Ahmed bin Saeed Al Maktoum said. “At the same time, we are keeping a close watch on headwinds such as rising fuel prices, the strengthening US dollar, inflationary costs, and geo-politics.”

The state-owned carrier has benefited from a pick-up in demand for long-haul travel, with traffic at Dubai International Airport continuing to climb after sinking during the pandemic. A record number of tourists visited the city, where Emirates is based, during the first half of 2023.

Emirates has helped transform Dubai into a global crossroads over the past several decades, using its hundreds of Airbus SE A380 and Boeing Co. 777 jetliners to connect the Persian Gulf city with far-flung destinations in Europe, Asia and North America.

The airline and the city will be in the spotlight at next week’s Dubai Airshow, where Emirates is expected to announce a substantial aircraft order to replenish its widebody fleet.

The show is taking place against a backdrop of rising geopolitical tensions due to the war between Israel and Hamas, along with economic uncertainty and cost of living pressures that could dent demand for long-haul travel.

Emirates is among the many airlines that suspended service to Tel Aviv, saying it will hold off on flights until the end of November. Others, including Air France-KLM and Virgin Atlantic Airways Ltd., have reported cancellations and softening demand for travel to the region.