Long-haul carrier Emirates saw its
most-profit year ever in 2022, earning $2.9 billion after bouncing back
from the coronavirus pandemic shutting down global aviation, the airline
announced Thursday.
The carrier's revival comes as Dubai, which
owns the airline, has seen property prices skyrocket and people flood
into the city-state in the United Arab Emirates as it lifted pandemic restrictions quickly and welcomed Russians fleeing Moscow's war on Ukraine.
Emirates'
annual report put revenue for the carrier at $29 billion in 2022, up
81% from 2021's figures of $16 billion. That drastic swing comes after
the airline reported a $1.1 billion loss in 2021.
The city-state, one of seven hereditarily ruled, autocratic sheikhdoms that make up the UAE, provided Emirates some $4 billion in a bailout in the depths of the pandemic.
Even today as travel has bounced back, the carrier still has some of
its double-decker Airbus A380s still parked, awaiting mechanics to be
able to fly again.
“We
had anticipated the strong return of travel, and as the last travel
restrictions lifted and triggered a tide of demand, we were ready to
expand our operations quickly and safely to serve our customers," Sheikh
Ahmed bin Saeed Al Maktoum, the chairman and chief executive of
Emirates, said in a statement.
The report said Emirates has repaid
just over $2 billion in other loans taken from financial institutions
during the pandemic, putting the total loan amount from outside of the
government at $4.7 billion.
The overall Emirates Group, which
includes travel company dnata, as well as food, beverage and leisure
holdings, reported profits of nearly $3 billion off revenues of $32.6
billion.
The overall group declared a dividend to its owner, the sovereign wealth fund Investment Corporation of Dubai, of $1.2 billion.
Emirates
acknowledged facing “a temporary setback” when it comes to receiving
new airplane orders, particularly as manufacturers struggle to regroup
and face supply issues following the height of the pandemic. The airline
already has on order 115 Boeing 777Xs, 30 Boeing 787 Dreamliners and 50
Airbus A350-900s, with the first planes likely not being delivered
until the middle of next year.
That delay has seen Emirates embark on a $2 billion retrofit program for 120 of its Airbus A380s and Boeing 777s.
Emirates
also has struck deals with United Airlines and Air Canada to share
routes, apparently putting to bed years of bad blood between U.S.
carriers and the Dubai airline.
As of now, Emirates has a fleet of
260 Boeing 777s and Airbus A380s flying to 150 passenger and cargo
destinations. The airline carried 43.6 million passengers and 1.8
million tons of cargo during 2022.
Earlier Thursday, Emirates
announced it would create a $200 million fund for research and
development projects aimed at reducing the use of fossil fuels in
commercial aviation. The airline said the funding would be distributed
over three years.
“It’s clear that with the current pathways
available to airlines in terms of emissions reduction, our industry
won’t be able to hit net zero targets in the prescribed timeline,”
airline President Tim Clark said in a statement. “We believe our
industry needs better solutions, and that’s why we’re looking to partner
with leading organizations."
Emirates separately will aim to use
so-called sustainable aviation fuel as well when possible — though it
remains incredibly scarce in the market. In January, the airline successfully flew a Boeing 777 on a test flight with one of its two engines entirely powered by the fuel.
(John Gambrell - Associated Press)
