Emirates will upgrade 220 planes with a $5 billion investment due to delivery delays: Report
Dubai’s Emirates airline will spend almost $5 billion to upgrade 220 of its planes. Since new planes are arriving late, airlines must keep using their current aircraft to maintain their flights, Emirates President Tim Clark said on Wednesday.
Upgrading Plan
“We have no choice,” Clark told reporters, according to Reuters. “This is the only way to keep and grow our airline network.”
Many airlines are upgrading their planes because manufacturers can’t keep up with demand. For example, Air India is improving its fleet to continue operations and offer better service.
Clark said Emirates wants to be a leader in product quality, but delays in the supply chain have forced the airline to take action itself.
“Our engineers are working fast to upgrade these planes as soon as possible. We now have most of the parts we need,” he said.
Emirates has criticized Boeing, especially after a door blew out on an Alaska Airlines flight last year. Clark said he hasn’t met Boeing’s new CEO, Kelly Ortberg, and doesn’t know if delivery schedules will change.
He also said Emirates is doubtful about getting its Boeing 777X planes by October 2025 and isn’t sure if Boeing will meet its production targets.
Financial Performance
In November, Emirates Group reported its highest-ever profit for the first half of a financial year. It made $2.8 billion (AED 10.4 billion) before taxes in the first six months of 2024-25, breaking last year’s record.
The company’s earnings (EBITDA) were $5.6 billion (AED 20.4 billion), slightly lower than last year’s $5.6 billion (AED 20.6 billion).
Revenue for the period was $19.3 billion (AED 70.8 billion), up 5% from last year’s $18.3 billion (AED 67.3 billion).
As of September 30, 2024, Emirates Group had $11.9 billion (AED 43.7 billion) in cash, down from $12.8 billion (AED 47.1 billion) on March 31, 2024. The company also paid a $544.6 million (AED 2 billion) dividend to its owner at the end of the 2023-24 financial year.
Published: 6th March 2025
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