Emirates Group Reports Record Profit on Strong Travel Demand - Bloomberg

Emirates Group Reports Record Profit on Strong Travel Demand - Bloomberg

Emirates Group, operator of the world’s largest long-haul airline, reported a third straight year of record profit and said it continued to benefit from strong global travel demand.

Profit rose to 20.5 billion dirhams ($5.6 billion) for the period ended March 31, after accounting for a corporate income tax enacted in 2023, the Dubai-based company said Thursday in a statement. In the prior year, the company reported profit of 18.7 billion dirhams. Revenue rose 6% to 145.4 billion dirhams.

The state-owned carrier has benefited from huge passenger flows through its hub in Dubai, after travel demand roared back from the Covid-19 pandemic. Geopolitical tensions and tariffs haven’t affected operations.

“While some markets are jittery about trade and travel restrictions, volatility is not new in our industry,” Chairman and Chief Executive Officer Sheikh Ahmed bin Saeed Al Maktoum said. “We simply adapt and navigate around these challenges.”

The airline has previously said it sees positive numbers for the next two years, with no impact from President Donald Trump’s tariffs so far.

In light of its performance, Emirates will pay out 22-week bonuses to staff, according to an internal memo seen by Bloomberg and confirmed by the airline. That’s higher than the 20-week package it handed employees last year.

The carrier will also pay its owner, the Investment Corporation of Dubai, a dividend of 6 billion dirhams.

To accommodate its growth plans, Emirates is looking to expand its fleet of widebody jets by adding additional Airbus SE 350 and Boeing Co. 777X aircraft. Both models come with challenges. Engines made by Rolls Royce Holdings Plc have hampered performance on the Airbus 350-1000 aircraft, and the Boeing model — of which Emirates has already ordered over 200 units — is years behind schedule.