Emirates is 'very satisfied' with cash reserve; IPO a matter for government says Sheikh Ahmed

Dubai: Emirates Chairman and Chief Executive Sheikh Ahmed bin Saeed Al Maktoum is "very satisfied" with its cash reserve and expects record-breaking results for the 2024-25 financial year. The airline is expected to announce its full-year financial results early next month.

"You will see in the upcoming financial announcement that we are very satisfied with our cash reserve on the airline side," said Sheikh Ahmed in response to a question about a potential Emirates IPO. However, he said, "But if the government asks me to 'do it tomorrow,' I have to do it. This is how I take it. It's not my choice." Emirates reported a record profit of Dh17.2 billion, up 63 per cent from Dh10.6 billion in the 2023-24 results.

Commenting on travel flows to the US and China amid the ongoing trade war, Sheikh Ahmed reported that Emirates is performing "very well" with substantial traffic and seat factors across its network. "Traffic, seat factors on every point on the whole network is good…I can assure you that the guys in commercial planning do their job right by putting together an excellent product."

He specifically stated that he had not seen any decline in the number of people travelling to the US despite potential discussions around visa issues.

"I would say that people want to fly, and that's also one reason. But coming very specifically to you, I didn't see any shift in terms of a decline in the number of people travelling to the US. Maybe people will say, 'Yeah, it could be because of a visa issue,' but saying that... But we, I didn't see a decline," said the Chairman.

Regarding the impact of potential tariffs on the horizon, he said, "It's a bit early for me to prejudge as we speak today," but added that the airline remains "very vigilant" about issues that could increase costs for the business. He confirmed seeing shifts in cargo movements, noting that some companies are proactively altering shipping locations.

Commenting on the impact of ongoing regional tensions and global issues on route planning, Sheikh Ahmed said airlines are "very well used to quick reaction" as situations can change instantly. He noted that the world "will never be free from issues" and airlines "will always need to be alert all the time."

Reports suggest that while many regional and international carriers consider making a play for Boeing aircraft initially intended for Chinese buyers, Sheikh Ahmed offered a cautious perspective. He stated flatly, "It is not as simple as that." Sheikh Ahmed elaborated on the complexities, noting the ongoing market conditions with only two major manufacturers, "Airbus and Boeing," who have experienced "a lot of delays."

He highlighted that these aircraft are configured to "whatever airline's setup – seats, looks, configuration, you name it." Integrating such planes into Emirates' operations would require stripping and retrofitting them to the airline's specific "Emirates standard," which he indicated "may be a bit expensive to deal with."

For Emirates, he stated that adding an aircraft isn't just about filling seats; it "cannot expect that I just put an aircraft just to put people on board without really fitting into my system and the National carrier standard."