dnata Expects to Double in Size as It Shifts to New Dubai Airport

dnata, a Dubai-based airport and travel services company, plans to double in size by 2032-2034 as it shifts its operations to the new passenger terminal at Al Maktoum International Airport (DWC), increasing its handling capacity to 150-160 million passengers and expanding its global presence through mergers and acquisitions." This description focuses on the primary topic of dnata's expansion plans, the main entity being the company itself, and the context of the airport and travel industry. It also highlights the significant actions and consequences of the expansion, including the increased handling capacity and global growth. The description provides objective and relevant details that will guide the AI in creating an accurate visual representation of the article's content, such as depicting an airport terminal, aircraft, and dnata's logo.

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Bijay Laxmi
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dnata Expects to Double in Size as It Shifts to New Dubai Airport

dnata Expects to Double in Size as It Shifts to New Dubai Airport

dnata, the airport and travel services company that is part of Dubai's Emirates Group, expects to double in size by 2032-2034 as it shifts its full operations to the new passenger terminal at Al Maktoum International Airport (DWC). This move is anticipated to increase the company's handling capacity to 150-160 million passengers between DWC and Dubai International Airport (DXB).

Why this matters: The expansion of dnata's operations at Al Maktoum International Airport will have significant implications for the global aviation industry, as it will increase the airport's capacity and competitiveness. This, in turn, could lead to increased economic growth and job opportunities in the region.

Currently, dnata handles a variety of aviation services, including ground handling and cargo services, in 98 airports globally. The company has experienced significant growth, with a 9% annual increase in aircraft turns handled worldwide, reaching 778,026, and a 6% increase in its workforce, now at 48,900 employees.

As part of its expansion strategy, dnata is actively seeking opportunities for mergers and acquisitions across several business segments, particularly in ground-handling and cargo-handling. The company is focusing on regions such as Latin America, the Middle East, and the Far East. CEO Steve Allen stated, "We are probably, at any time, talking to 40 different companies" and noted that "plenty" of deals are "at the end of the pipeline." South America is seen as a huge growth market opportunity, with countries like Brazil mentioned as potential targets.

In the 2023-2024 financial year, dnata invested Dh464 million ($126 million) and plans to exceed that level in the current fiscal year. The investments are focused on equipment, infrastructure, and technology. As part of its sustainability efforts, the company is also investing in electric and hybrid equipment.

dnata has secured a seven-year ground handling license to operate at Fiumicino Airport in Rome, where it will invest more than €20 million in new ground support equipment. The company is also set to open a new cargo facility in Amsterdam in July 2025 with an investment of €40 million and will soon open another cargo facility in Erbil, Iraq.

In the fiscal year that ended in March, dnata's profit quadrupled to Dh1.4 billion, driven by growth across its business divisions. Revenue rose by 29% to a record Dh19.2 billion. The company expects to exceed its previous year's performance, having won more than 120 contracts across its various business segments.

dnata, founded in 1959, operates in over 30 countries, providing a wide range of airport and travel services. The company's operations include supplying airlines with catering and handling baggage and cargo, as well as owning companies that sell holiday packages and provide retail and corporate travel booking services. With its ambitious expansion plans and strong financial performance, dnata is poised for significant growth as it prepares to shift its operations to Al Maktoum International Airport in the coming years.

Key Takeaways

  • dnata aims to double in size by 2032-2034 with a new terminal at Al Maktoum International Airport.
  • The expansion will increase handling capacity to 150-160 million passengers between DWC and DXB.
  • dnata is seeking M&A opportunities in ground-handling and cargo-handling in Latin America, Middle East, and Far East.
  • The company invested Dh464 million in 2023-2024 and plans to exceed that in the current fiscal year.
  • dnata's profit quadrupled to Dh1.4 billion in the last fiscal year, driven by growth across its business divisions.