Emirates Becomes World’s Most Profitable Airline, Overtakes Delta

Emirates Becomes World’s Most Profitable Airline, Overtakes Delta

20

Delta Air Lines is no longer the world’s most profitable airline, and it’s not even United Airlines that has dethroned the carrier. Emirates Airline has just revealed its results for the 2024-2025 financial year, and they put the Dubai-based airline in the top spot.

Details of Emirates’ impressive financial results

Emirates Group has reported a record $6.2 billion profit, while Emirates Airline has reported a $5.8 billion profit (compared to $5.2 billion and $4.7 million last year, respectively), representing a 14.9% profit margin. Emirates Group also includes ground handling company dnata, though I’ll be focusing specifically on the carrier’s results.

To look at some of the key figures of Emirates’ performance compared to the previous year:

  • Revenue increased by 6%, to $34.9 billion
  • Passenger and cargo capacity increased by 4%, to 60 billion ATKMs
  • Passengers carried was up by 3%, to 53.7 million
  • Average load factor decreased by 1%, to 78.9%
  • Passenger yield remained unchanged, at 10.0 cents per revenue passenger kilometer
  • Operating costs increased by 4%, with the carrier’s fuel bill decreasing by 4%
  • Emirates Group’s total workforce was increased by 9%, to 121,223 employees (employees are receiving a 22-week bonus)
Emirates financial performance highlights for 2024-2025

Emirates is ending the financial year with its highest ever cash balance of $14.6 billion, up 13% from last year. Furthermore, Emirates Group has declared a dividend of $1.6 billion to its owner, Investment Corporation of Dubai.

Here’s how Emirates CEO Sheikh Ahmed bin Saeed Al Maktoum describes these results:

“For 2024-25, the Emirates Group has raised the bar to set new records for profit, revenue, and cash assets. Through the year, Emirates and dnata were able to move quickly to meet the strong demand for air transport services across markets and win over customers – thanks to our non-stop investments in our people, in building partnerships, and in delivering great products and services.”

“We enter the year ahead with excitement and optimism. Our excellent financial standing enables us to continue building on and scaling up from our successful business models. While some markets are jittery about trade and travel restrictions, volatility is not new in our industry. We simply adapt and navigate around these challenges.” 

“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. Our retrofit programme will continue apace to provide our customers the latest Emirates products and a more consistent experience across our A380, 777 and A350 fleet.”

Emirates didn’t grow all that much over the past year

Emirates is now more profitable than Delta

Perhaps the most interesting thing about Emirates’ financial results this year is that the airline has overtaken Delta as the most profitable in the world.

When I write about the financial performance of the Gulf carriers, there are always questions about whether this is all just imaginary math, given that the Gulf carriers are state owned. After all, going back a decade, US airlines spent millions of dollars campaigning to convince us that these are all heavily subsidized airlines that light money on fire (they’ve since changed their tune).

Yes, these results are accurate, and they’re independently audited per international financial reporting standards. However, there’s no denying that the math on some things works differently for an airline like Emirates than many other airlines:

  • Emirates has had easier access to attractive financing on account of being government owned, which has allowed the airline to become what it is
  • Emirates largely has lower operating costs than other airlines, given that the airline essentially has the same owner as the airport, ground handlers, catering company, etc.

I do think Emirates is “legitimately” profitable, though of course it’s not an apples-to-apples comparison to US airlines in terms of revenue vs. costs. The problem with the A380 for most airlines is that they haven’t been able to scale their operations in a way that works. Emirates has been able to scale its route network unlike any other airline.

The A380 was quite literally created for Emirates’ business model, it’s just a shame that other airlines couldn’t make it work in the same way. One has to wonder what Emirates will look like starting in the mid-2030s, when the A380 is no longer in service.

For that matter, I think it’s worth pointing out that even the most profitable US airlines are only sort of profitable in terms of transporting passengers. For example, when you look at the financial results of carriers like American, Delta, and United, you’ll find that the airlines largely don’t actually make money transporting passengers, but rather earn much of their profits through their frequent flyer programs and other means. They’re lucky to breakeven in terms of the cost per air seat mile vs. the revenue per air seat mile.

Emirates is obviously just much more efficient — labor costs are lower, the airline is flying much larger planes with lower per seat operating costs, operating flights in the Middle East is cheaper, etc.

Emirates has had more success with the A380 than any other airline

Bottom line

Emirates has reported a record profit for the past financial year, which is its third consecutive year of record profits. What’s particularly remarkable this time around is that Emirates has overtaken Delta as the world’s most profitable airline.

It’s great to see Emirates continuing to succeed with its business model. The airline has scaled operations with the A380 in a way that no other airline has, and that’s a key part of the carrier’s success.

What do you make of Emirates’ financial results?

Conversations (20)
The comments on this page have not been provided, reviewed, approved or otherwise endorsed by any advertiser, and it is not an advertiser's responsibility to ensure posts and/or questions are answered.
Type your response here.

If you'd like to participate in the discussion, please adhere to our commenting guidelines. Anyone can comment, and your email address will not be published. Register to save your unique username and earn special OMAAT reputation perks!

  1. digital_notmad Diamond

    Very impressive work, particularly given the unique advantages US carriers often have.

  2. Dan Guest

    They are profitable a lot due to not having to pay workers a lot of money since it’s a contract and not a union. Delta is also profitable due to not really having unions. But keep voting for unions.

    1. Joey Diamond

      I'm happy for Emirates but overall I do agree it's hard to compare UAE with USA in terms of labor costs (salaries) and cost of living. Most workers in the UAE are not UAE citizens and may not have the same negotiating power in terms of salaries.

  3. GRkennedy New Member

    Something I'm not getting and which would be worth explaining:
    - Average load factor decreased by 1%
    - Passenger yield per kilometer remained unchanged
    - Operating costs increased by 4%
    How do they turn this into an increased profit?

    1. UncleRonnie Diamond

      Money from Premiership Football sponsorship

  4. Justin Dev Guest

    India is used as a catchment area for Emirates. It will be interesting to see what happens if and when Air India gets its act together and becomes a viable competitor.

    1. Eve Guest

      Well we have been hoping that with AI ever since it privatized but they are not doing themselves any favors. They seem to have left the honeymoon period and entered a new phase of WHO GIVES A F. They even merged Vistara, frankly a pretty good premium airline in India into Air India and turned them into the chaos that is AI. It will be quiet awhile before AI will be a threat to the...

      Well we have been hoping that with AI ever since it privatized but they are not doing themselves any favors. They seem to have left the honeymoon period and entered a new phase of WHO GIVES A F. They even merged Vistara, frankly a pretty good premium airline in India into Air India and turned them into the chaos that is AI. It will be quiet awhile before AI will be a threat to the ME3. That said, I have flown Air India Express and that is one carrier that has significantly improved

    2. yoloswag420 Guest

      India has systemic issues it needs to fix as a country, as that is what largely holds back Air India.

    1. Eskimo Guest

      Would make EK even more profitable.

  5. LEo Diamond

    What's even crazier is the load factor—78.9% isn't that high. Even Chinese carriers have reported higher figures (China Southern reported 84.7% yet still posted a loss). The fact that Emirates can extract a profit while offering attractive pricing—on Asia–Europe routes, the ME3 are second only to the heavily subsidized Chinese carriers in terms of low fares—demonstrates just how efficient EK’s operations are.

    1. Sharon Guest

      It’s not comparable to say Emirates is more profitable than US carriers. You cannot simply compare their profits because their expenses vary so much.

      Emirates has so much vertical integration which lowers costs significantly. Further labor costs are so much lower for Emirates. If you pay a pilot $50 less per hour, that adds up quite a bit.

    2. AeroB13a Diamond

      Sharon, naysayers should consider the facts and not just their own prejudices about EQ. Having enjoyed numerous EQ journeys in F, I can honestly attest to the quality of service on offer.

  6. BZ Guest

    Focus on the customer and you will be profitable.

    Well done Emirates.

    1. AeroB13a Diamond

      Happy VE Day to all readers, welcome back TD and a very well done to EK.
      Let the sour grapes begin …. :-)

    2. MaxPower Diamond

      lol. If Tim is really back, this might be the best article Lucky could type today. He'll be a busy bee today, if so. But in fairness, United already passed Delta in quarterly profitability. ;)

    3. Ben Schlappig OMAAT

      @ AeroB13a -- You're right, it is indeed the end of Tim's vacation, and he's welcome to comment here again (respectfully). And if he doesn't want to comment, that's of course great as well. And Dim Tunn, please remember the rule about not imitating others. I ask you to please use a different username. Thank you!

    4. Mason Guest

      Plane Jane deserves a vacation too.

      Calling everyone who she gets mad at Tim Dunn's fake profile.

Featured Comments Most helpful comments ( as chosen by the OMAAT community ).

The comments on this page have not been provided, reviewed, approved or otherwise endorsed by any advertiser, and it is not an advertiser's responsibility to ensure posts and/or questions are answered.

Ben Schlappig OMAAT

@ AeroB13a -- You're right, it is indeed the end of Tim's vacation, and he's welcome to comment here again (respectfully). And if he doesn't want to comment, that's of course great as well. And Dim Tunn, please remember the rule about not imitating others. I ask you to please use a different username. Thank you!

2
Dim Tunn Guest

P R E M I U M

2
AeroB13a Diamond

Sharon, naysayers should consider the facts and not just their own prejudices about EQ. Having enjoyed numerous EQ journeys in F, I can honestly attest to the quality of service on offer.

1
Meet Ben Schlappig, OMAAT Founder
5,527,136 Miles Traveled

39,914,500 Words Written

42,354 Posts Published

Keep Exploring OMAAT