UAE’s Emirates Group and Aramex report 3Q earnings

EMIRATES-

UAE-based Emirates Group’s top line rose 5% y-o-y to hit AED 70.8 bn in the six months ending on 30 September, marking its “best-ever half-year” financial performance to date, according to an earnings release (pdf) published on Thursday. The group’s net income amounted to AED 9.3 bn in 1H. The performance was attributed to heightened customer demand across all business divisions and regions.

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National airline Emirates’ net income attributable to owners declined by 6.9% y-o-y to AED 8.7 bn during that same period, according to its financials (pdf), while the carrier’s revenues rose by 4.5% y-o-y to AED 62.2 bn due to strong travel and air cargo demand. Overall capacity increased by 5% y-o-y to 29.9 bn available tonne kilometers (ATKM) in 1H.

Boosted cargo capacity: The group’s cargo arm Emirates SkyCargo transported 16% more cargo tonnes y-o-y to just over 1.1m tonnes in 1H. This performance was driven by a growth in Dubai-bound shipments and heightened Chinese e-commerce traffic. The cargo carrier experienced an 11% increase in cargo yields, driven by high customer demand for its specialized products and its network of freighter and bellyhold cargo services, the statement said.

And an upswing for subsidiary Dnata: Air services provider Dnata, a subsidiary of Emirates Group, saw its top line grow 11% y-o-y to AED 10.4 bn over the first six months of this year. dnata saw its net income reach AED 571 mn during the period, down 19.5% y-o-y on the back of a one-off impairment charge of AED 152 mn. Dnata’s airport operations division contributed the bulk of this performance, accounting for AED 4.8 bn in revenues. The number of aircraft turns handled by the firm grew by 2% y-o-y to settle at 391k, and the volume of cargo handled increased by 18% y-o-y to 1.5 mn tonnes in 1H.

Looking ahead: “The Group’s strong profitability enables us to make the investments necessary for our continued success. We’re investing bns of USD to bring new products and services to the market for our customers; to implement advanced technologies and other innovation projects to drive growth,” said Emirates Airline and Group Chairman and CEO Ahmed Al Maktoum.

ARAMEX-

UAE-based logistics outfit Aramex’s net income rose 212.1% y-o-y to AED 27.1 mn in 3Q 2024, according to its financial statements (pdf).The company recorded AED 1.6 bn in revenues, up 18% y-o-y, buoyed by “consistent volume gains across all product lines,” with each achieving double-digit revenue growth during the quarter, according to a separate earnings release (pdf).

On a nine-month basis, Aramex saw its bottom line rise 49.8% y-o-y to AED 76.9 mn. The company’s top line also increased 11.0% during the same period to AED 4.6 bn, driven primarily by improved sales, especially in international and domestic express operations.

Looking ahead: Aramex is on track to meet its year-end targets, it said. The company is currently “reassessing certain activities” within its freight business, anticipating lower margins across the industry due to a challenging operating environment.