Emirates has just posted a record profit of Dh10.6 billion ($2.9 billion) this week, and now the Dubai-based carrier surprises again by paying its 50,000+ employees a six-month salary bonus to be with their May salary.
Emirates has always been one of the better Middle Eastern airlines (and airlines in general) to take care of its employees, but this level of profit sharing is unprecedented and will no doubt put pressure on competitors.
Carriers like Emirates are under constant pressure to recruit sufficient numbers of staff and this will no doubt help them with future recruitment efforts.
As The National reports, Emirates will pay the bonus together with the May salary.
Staff at Emirates airlines will enjoy a share of a Dh10.6 billion ($2.9 billion) bonus pot after the company recorded its highest annual profit yet.
Documentation seen by The National shows that more than 50,000 of its employees will receive 24 weeks of pay with their May salary.
The flagship airline in Dubai posted a Dh10.6 billion ($2.9 billion) profit in the fiscal year that ended on March 31.
“For our outstanding performance in 2022-2023, you deserve every bit of the 24-week profit share,” the document read.
The record annual profit aligns with the strong travel demand as governments reopened international borders and lifted pandemic-related restrictions. …
The airline carried 43.6 million passengers, up 123 per cent from last year, it said.
“We had anticipated the strong return of travel, and as the last travel restrictions lifted and triggered a tide of demand, we were ready to expand our operations quickly and safely to serve our customers,” Sheikh Ahmed bin Saeed, chairman and chief executive of Emirates airline and group, said on Thursday.
“As a result, we have delivered a record financial performance and cash balance for our financial year 2022-2023.
“This reflects the strength of our proven business model, our careful forward planning, the hard work of all our employees, and our solid partnerships across the aviation and travel ecosystem.”
I think this pretty much sets the gold standard as far as common employment compensation in the aviation industry is concerned. Add to that that the income in Dubai is tax-free, not so if the employee is based in other countries with regular taxation, though.
Emirates has followed a profit-sharing model in the past but it never amounted to half of their annual compensation. Keep in mind, however, that this follows several years of rather difficult times and stagnation due to the pandemic.
Emirates has kept flying to many destinations even during Covid, and while prices were high at least they provided a lifeline while many other airlines just shut down all their routes.
They have invested heavily in products and now in their employees as well, which is always a great thing to do for a company as lifts morale, but it also sets a standard that might come with future expectations. Is that going to be a good thing? That remains to be seen.
I’d guess it definitely helps them to recruit new staff. If I had the chance to apply at a company that just showed its willingness to reward employees massively, the likelihood of me wanting to work there would be much higher than for a competitor who didn’t make such headlines.
This way, Emirates could see an uptick in interest for the recruitment events they usually hold in various hotels all over the world. At the same time, it starves the competition of talent.
Emirates has announced an unprecedented profit-sharing for this year, rewarding employees with a 6-month salary bonus which amounts to pretty much half of their annual compensation. What a windfall for these folks, and I agree they deserve every penny of it.
Over the years, I found that those employed with Emirates generally strive to provide good service and are more competent than, for example, their brethren at Etihad or Qatar Airways. I’m sure that has mainly to do with Emirates being a more attractive employer, and applicants try it there first before moving on to the competition. It’s also significantly more attractive to live and work in Dubai than in Qatar, Abu Dhabi, or (gasp) Saudi Arabia.
This example shows that even without unions present, it’s possible to take good care of employees and keep them happy while the European competition reels from one strike after the other. I have completely stopped using European carriers because of their constant labor actions that threw countless wrenches into my travel plans over the years.