An Emirates Airbus A380 aircraft. The airline has so far recovered about 95 per cent of its pre-Covid network size. AFP
An Emirates Airbus A380 aircraft. The airline has so far recovered about 95 per cent of its pre-Covid network size. AFP

Emirates posts $2.4 billion first-half profit in UAE's first corporate tax year



Emirates, the world's biggest long-haul airline, posted a first-half profit after tax of Dh8.7 billion ($2.4 billion) in the first financial year that the UAE corporate income tax is applied to the company.

This is 7 per cent below the Dh9.4 billion post-tax profit the airline recorded during the first six months of its financial year from April to September. The figures for September 2024 and September 2023 are not directly comparable, given that it's the first fiscal year that the UAE corporate income tax of 9 per cent applies to Emirates' financial reporting, it said on Thursday.

The Dubai-based airline's profit before tax reached a record of Dh9.7 billion in the April to September period, compared to Dh9.5 billion for the same time a year ago, reflecting strong travel and air cargo demand across its markets, Emirates said.

The airline's revenue rose five per cent year-on-year to a record Dh62.2 billion.

“We expect customer demand to remain strong for the rest of 2024-25, and we look forward to increasing our capacity to grow revenues as new aircraft join the Emirates fleet and new facilities come online at dnata,” Sheikh Ahmed bin Saeed, chairman and chief executive of Emirates airline and group, said.

“The outlook is positive, but we don’t intend to rest on our laurels. We will stay agile in deploying our capacity and resources in a dynamic marketplace.”

Emirates recorded strong travel demand in the first six months of its fiscal year, despite the Israel-Gaza war.

Like many other airlines, Emirates flights to Israel, Lebanon, Iraq, Jordan and Iran have been impacted by the Gaza war and Israeli attacks on Lebanon.

However, in the first half of the year, Emirates increased flights to eight cities: Amsterdam, Cebu, Clark, Luanda, Lyon, Madrid, Manila and Singapore. It also opened new routes to Bogota through Miami in June and Madagascar through Seychelles in September.

Dubai International Airport, Emirates' home base, in the first six months of this year handled a record 44.9 million people, up 8 per cent on the same period of 2023.

Emirates carried 26.9 million passengers between April and September, up 3 per cent from the same period last year. Capacity, measured in Available Seat Kilometres (ASKM), increased by 4 per cent.

Load factor, a measure of how well an airline fills available seats with paying passengers, dipped to 80 per cent in the first half of the financial year from 81.5 per cent the previous year.

The airline's direct operating costs, including fuel, rose by 6 per cent in line with increased operations, it said.

Fuel remains the largest component of the operating cost, at 32 per cent, compared to 34 per cent in the same period last year, it said.

Emirates' freight arm, SkyCargo, carried nearly 1.2 million tonnes in the first six months, up 16 per cent compared on the same period last year, with “notable volume contributions from strong Chinese e-commerce traffic, and a rise in shipments bound for Dubai”, it said.

Emirates group, which includes global airport services company Dnata, recorded post-tax profit of Dh 9.3 billion, after accounting for the 9 per cent tax charge, it said.

The group's pre-tax profit rose one per cent year-on-year to a record Dh10.4 billion in the April to September period.

Group revenue rose five per cent to a record Dh70.8 billion, reflecting “consistently strong” customer demand across business divisions and across regions it operates it, Emirates said.

“This again illustrates the power of our proven business model working in combination with Dubai's growth trajectory as a city of choice to live, work, visit, connect through and do business in,” Sheikh Ahmed said.

The group closed the six months with a cash position of Dh43.7 billion on September 30, down from Dh47.1 billion in March.

“The group has been able to tap on its own strong cash reserves to support business needs, including payments for new freighter aircraft orders and other debt payments,” it said.

The group also paid Dh2 billion in dividends to its Dubai government owner, as previously disclosed at the end of its 2023-2024 financial year.

The group’s workforce grew 3 per cent year-on-year to 114,610 as of September 30.

Dnata, the group's global airport services unit, recorded a 19 per cent drop in profit after tax of Dh571 million. Pre-tax profit declined 5 per cent to Dh720 million, mainly due to a one-off impairment charge of Dh152 million, the airline said.

What is double taxation?
  • Americans living abroad file taxes with the Internal Revenue Service, which can cost hundreds of dollars to complete even though about 60 per cent do not owe taxes, according to the Taxpayer Advocate Service
  • Those obligations apply to millions of Americans residing overseas – estimates range from 3.9 million to 5.5 million – including so-called "accidental Americans" who are unaware they hold dual citizenship
  • The double taxation policy has been a contentious issue for decades, with many overseas Americans feeling that it punishes them for pursuing opportunities abroad
  • Unlike most countries, the US follows a citizenship-based taxation system, meaning that Americans must file taxes annually, even if they do not earn any income in the US.
Company%20Profile
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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
A timeline of the Historical Dictionary of the Arabic Language
  • 2018: Formal work begins
  • November 2021: First 17 volumes launched 
  • November 2022: Additional 19 volumes released
  • October 2023: Another 31 volumes released
  • November 2024: All 127 volumes completed
Stage 5 results

1 Tadej Pogacar (SLO) UAE Team Emirates 3:48:53

2 Alexey Lutsenko (KAZ) Astana Pro Team -

Adam Yates (GBR) Mitchelton-Scott - 

4 David Gaudu (FRA) Groupama-FDJ  0:00:04

5 Ilnur Zakarin (RUS) CCC Team 0:00:07

General Classification:

1 Adam Yates (GBR) Mitchelton-Scott 20:35:04

2 Tadej Pogacar (SlO) UAE Team Emirates 0:01:01

3 Alexey Lutsenko (KAZ) Astana Pro Team 0:01:33

4 David Gaudu (FRA) Groupama-FDJ 0:01:48

5 Rafał Majka (POL) Bora-Hansgrohe 0:02:11

The biog

Born November 11, 1948
Education: BA, English Language and Literature, Cairo University
Family: Four brothers, seven sisters, two daughters, 42 and 39, two sons, 43 and 35, and 15 grandchildren
Hobbies: Reading and traveling

Farasan Boat: 128km Away from Anchorage

Director: Mowaffaq Alobaid 

Stars: Abdulaziz Almadhi, Mohammed Al Akkasi, Ali Al Suhaibani

Rating: 4/5

COMPANY PROFILE
Name: Airev
Started: September 2023
Founder: Muhammad Khalid
Based: Abu Dhabi
Sector: Generative AI
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
 
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%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EAlmouneer%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Dr%20Noha%20Khater%20and%20Rania%20Kadry%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EEgypt%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%20%3C%2Fstrong%3E120%3Cbr%3E%3Cstrong%3EInvestment%3A%20%3C%2Fstrong%3EBootstrapped%2C%20with%20support%20from%20Insead%20and%20Egyptian%20government%2C%20seed%20round%20of%20%3Cbr%3E%243.6%20million%20led%20by%20Global%20Ventures%3Cbr%3E%3C%2Fp%3E%0A

THE BIO

Favourite holiday destination: Whenever I have any free time I always go back to see my family in Caltra, Galway, it’s the only place I can properly relax.

Favourite film: The Way, starring Martin Sheen. It’s about the Camino de Santiago walk from France to Spain.

Personal motto: If something’s meant for you it won’t pass you by.

Business Insights
  • As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses. 
  • SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income. 
  • Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
Updated: November 07, 2024, 12:22 PM