The company is projecting a 10 per cent increase in its cargo business this financial year. Photo: dnata
The company is projecting a 10 per cent increase in its cargo business this financial year. Photo: dnata
The company is projecting a 10 per cent increase in its cargo business this financial year. Photo: dnata
The company is projecting a 10 per cent increase in its cargo business this financial year. Photo: dnata

'We'll smash it again': Dnata plots M&A deals, autonomous vehicles trials and cargo growth


Deena Kamel
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Emirates Group's dnata, which provides airport and travel services in 30 countries, expects to exceed its record annual growth with planned acquisition deals, a 10 per cent jump in cargo volumes and testing autonomous vehicles for its Al Maktoum International Airport (DWC) operations.

The company is planning for “hundreds of millions” of dollars in capital expenditure and a forecast of low double-digit growth across its business this financial year, Steve Allen, dnata's group chief executive, told The National on Monday. Dnata last week announced record annual profit and revenue for the financial year ended March 31.

“We'll smash it again this year,” Mr Allen said. “What we're looking to do is bring more profit back from overseas.”

Dnata posted a record pre-tax profit of $430 million − up 2 per cent from last year. A record revenue of $5.8 billion, up 10 per cent year-on-year, was driven by increased flight and travel demand across the world, particularly in its major markets of Australia, Europe, the UAE, UK and US.

The company is projecting a 10 per cent increase in its cargo business this financial year after “smashing” the milestone of one million tonnes of cargo volume carried through Dubai last year.

With Dubai Airports' projections for handling 96 million passengers at Dubai International Airport this year and 100 million by end of 2026, dnata expects its growth to continue in terms of passenger, cargo and baggage handling, Mr Allen said.

Dnata’s group chief executive Steve Allen said the company is keeping a “close watch” on US tariffs developments but does not expect a significant impact on the company's business this year. Photo: dnata
Dnata’s group chief executive Steve Allen said the company is keeping a “close watch” on US tariffs developments but does not expect a significant impact on the company's business this year. Photo: dnata

'Room for consolidation'

Dnata is in talks for several merger and acquisition opportunities in-flight catering and ground-handling businesses, particularly in South America and Asia-Pacific, Mr Allen said.

“There's definitely room for consolidation … I do see that happening this year,” he said. “The pipeline is a mixture: some are very close to fruition and some others are a fair distance away, but we've got a very full pipeline of options.”

The acquisition target companies are small to medium in size as dnata prefers to maintain management control of the businesses it operates, he added.

Dnata has about "$1 billion worth of cash and quite low debt”, placing the company in a “strong position” to invest and grow through acquisitions, according to Mr Allen.

The potential deals will be financed through a mixture of operating cash and some debt.

Dnata has also “ring-fenced” capital to spend on new facilities, green equipment and new technology, as well as investments in training its staff, he said, adding that it will develop internal cadres before recruiting externally.

By the financial year’s end, dnata’s workforce grew 9 per cent year-on-year to 51,758 employees.

Autonomous vehicles trials

Investment in advanced technology is high on dnata's priorities, tying in with its move to the new passenger terminal at DWC in the next decade.

Dnata is seeking to test new technologies well ahead of the new terminal's opening, which Dubai government officials say, is slated for 2032.

“We do see a future for autonomous vehicles in the new airport,” Mr Allen said. “We're investing quite a lot in technology to run the airport using advanced machine learning and AI, that's certainly a theme going forward to use technology to ensure optimal operations.”

The company is currently testing autonomous vehicles from several suppliers and expects to place an order within three to four years, he said.

Dnata is involved with the new terminal's layout, holding daily workshops with its designers to map out the roadways, staging area for equipment, locations of cargo and maintenance facilities, to ensure that the design leads to optimal operations.

“We're already earmarking those locations and costing out what investment needs to go in from our side, we don't need to award those contracts until nearer the time,” Mr Allen said.

The airport's “vast footprint” means dnata has to move equipment and cargo over large distances from the facilities to the aircraft side, which raises the need for autonomous vehicles.

Dnata is talking to AV providers about future-proof designs and testing their ideas to integrate them into the airport design process.

These vehicles will help shrink long distances of up to 7km between cargo and passenger facilities at the new airport. “You can imagine a constant flow down a single channel of autonomous vehicles … that's a great opportunity for autonomy because it's following a standard layout and standard processes. We definitely think that's a huge opportunity,” he said.

Autonomous processes for loading baggage, fuelling planes and push-back of aircraft are possible to implement at the new airport in seven to 10 years, he added.

However, human intervention will remain crucial in tracking these autonomous procedures and ensure safe operations.

“We need to make sure that we future-proof it, but we don't just expect it will definitely happen. We've got a manpower contingency on top of wanting to go as autonomous as we can.”

As a global business, dnata can trial autonomous vehicles and other equipment in its Stations of Tomorrow in airports around the world where it is testing the latest technology.

dnata expects autonomous vehicles to load cargo at its future operations at the new DWC airport. Photo: dnata
dnata expects autonomous vehicles to load cargo at its future operations at the new DWC airport. Photo: dnata

An IPO-prepared business

Asked about potential plans for an initial public offering for dnata, Mr Allen said that dnata is in good shape for a listing in terms of the group's “world-class” business governance, financial reporting and talks with stakeholders, but it is up to the government to decide on taking it public.

“It's not a big step from where we are today to being a public company. We are as ready as we could be … I don't think it would take a long time to get ready for an IPO,” Mr Allen said.

However, there is also a case for waiting on the IPO decision as state-owned entities such as Emirates Group, Dubai Airports, and others prepare for the $35 billion DWC expansion project.

“I can also see that there's reasons why the government wouldn't want to rush into it, because we've got one of the biggest investments in airport infrastructure ever coming our way and we have a group of companies that work extremely well together right now. So why rock the boat?” Mr Allen said.

The Emirates group paid Dh6 billion ($1.6 billion) in dividends to its owner, the Investment Corporation of Dubai. Mr Allen said: “So why share that with other people” when the government is investing in the DWC airport expansion?

“It's absolutely a decision for the government, but we just continue to be the best that we can and be ready if necessary.”

US tariffs impact and outlook

Meanwhile, dnata is keeping a “close watch” on how the US President Donald Trump's tariffs situation develops, Mr Allen said, commenting on its potential impact on the business.

With international businesses accounting for 75 per cent of dnata's revenue, it does not expect a significant impact on business this year as its global portfolio means it can adjust to potential changes in passenger travel or cargo flows, Mr Allen said.

The weakening of the US dollar means inbound travel to the US will be more attractive to passengers, he added.

Longer adjustment times for the shipping industry to adapt to the tariffs rules also means that air cargo sector stands to benefit as an alternative means of quick transportation of goods, he said.

Dnata is “well placed” to adjust to any new markets that are developed if there is any redirection of cargo flows due to the tariffs measures.

“I don't see too much impact on the business in the next year or so.”

While there is a “potential downside” from the economic uncertainty and possibility of economic recession, at the moment business remains “incredibly resilient” and “we haven't seen an end for people's desire to travel”, Mr Allen said.

“We've got a strong balance sheet, very low debt and a diverse business, so we don't see a scenario where it's going to be a significant downside,” he said.

Mr Allen's comments came just before the US and China said they would ease some of their tit-for-tat tariff measures, fuelling hopes of an end to the trade war between the world's two largest economies.

Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
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  • Laser pointers
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  • Sharp objects
  • Political flags or banners
  • Bikes, skateboards or scooters
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Financial considerations before buying a property

Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.

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Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.

Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier. 

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

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He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal

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Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.

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Updated: May 13, 2025, 1:09 PM`