Thursday, December 5, 2024

dnata reports strong growth and expands global operations

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dnata, the global air and travel services provider, reported robust growth across its business divisions during the first half of the 2024-25 fiscal year, driven by contract wins, expansion, and sustainability initiatives.

The company’s revenue, including operating income, reached AED 10.4 billion (US$ 2.8 billion), marking an 11% increase from the same period last year, although profit before tax fell slightly by 5% to AED 720 million (US$ 196 million) due to a one-time impairment charge.

Key to dnata’s success this period was its airport operations segment, which brought in AED 4.8 billion (US$ 1.3 billion), a 15% increase.

dnata handled 391,365 aircraft turns, up 2%, and processed 1.5 million tonnes of cargo, a significant 18% increase in response to growing air cargo demand.

This segment benefited from growth in key markets, including Australia, Singapore, the UAE, and the UK.

In line with its expansion goals, dnata commenced ground handling operations at Raleigh-Durham International Airport in the USA, and secured new ground support equipment valued at US$ 210 million.

Additionally, dnata’s Zurich operations are set for a 50% boost in cargo handling capacity with new warehouse space.

Sustainability remained a focus, with dnata transitioning its UAE fleet of non-electric airside vehicles to biodiesel and introducing more electric GSEs in Brazil and the UAE.

dnata’s flight catering and retail division also saw an 8% revenue boost to AED 3.7 billion (US$ 1 billion), despite a 5% decline in total meals uplifted.

Increased demand in Australia and the UK and adjusted contracts in response to rising supply costs contributed to this growth.

dnata’s travel division experienced the highest revenue growth, up 23% to AED 1.8 billion (US$ 483 million), backed by strong sales in its Imagine Cruising, Destination Asia, and Middle East Corporate Travel businesses.

Total Transactional Value (TTV) sales reached AED 4.5 billion (US$ 1.2 billion), rising from AED 4.1 billion (US$ 1.1 billion) last year.

dnata’s EBITDA of AED 1.3 billion (US$ 354 million) rose by 16%, illustrating the underlying operational strength across its diversified portfolio as the company continued to serve a growing airline customer base with high safety and quality standards.

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