By Manya Saini
DUBAI (Reuters) -Emirates airline on Thursday reported a record full-year profit, bucking a broader global slowdown in air travel as it capitalized on Dubai’s growth as a hub for major routes.
The strong performance underscores the carrier’s continued rebound from the pandemic and its strategic advantage operating out of Dubai, an expanding long-haul hub, even as peers in the U.S. and Europe flag rising cost pressures and weaker bookings.
But escalating trade tensions and geopolitical uncertainty are clouding the industry’s outlook for the rest of the year.
The Gulf carrier posted earnings of 19.1 billion dirhams ($5.2 billion) for the year ended March 31, compared with 17.2 billion dirhams a year earlier.
It carried 53.7 million passengers in the fiscal year, up 3% from a year earlier, while seat capacity climbed 4%.
Emirates plays a key role in positioning Dubai as a global aviation hub, and is part of the Emirates Group, which also owns ground-handling firm dnata and other aviation services.
Its parent Emirates Group reported a record annual profit before tax, up 18% from a year earlier, and said it would pay a 6 billion dirhams dividend to its owner, Dubai’s sovereign wealth fund.
“The Emirates Group has thrived and stayed resilient through geo-political and socio-economic challenges over the years,” Chairman and CEO Sheikh Ahmed bin Saeed Al Maktoum said in a statement.
DELIVERY DELAYS
Airlines worldwide have been grappling with aircraft delivery delays from both Boeing and Airbus, forcing them to postpone route expansions and capacity ramp-ups.
Still, Emirates airline managed to grow total passenger and cargo capacity by 4% in the year.
Emirates said it added 99 more aircraft to its retrofit programme as delivery of new jets has been delayed. It will now see 219 jets undergoing a full cabin refresh at a total investment of $5 billion.
“Emirates will strengthen our network connectivity with the expected delivery of 16 A350s and 4 Boeing 777 freighters in 2025-26, providing much-needed capacity to meet customer demand,” said Sheikh Ahmed.
As of March 31, Emirates had 314 aircraft pending delivery in its order book with a total fleet count of 260 units.
($1 = 3.6727 UAE dirham)
(Reporting by Manya Saini. Editing by Mark Potter and Susan Fenton)
