(Bloomberg) — Emirates Group is giving more modest pay increases to employees this year, suggesting the owner of the world’s largest international airline is keeping a closer eye on costs.
Employees across its businesses in Dubai, including Emirates’ namesake carrier and the Dnata airport services unit, were granted a 3% increase to their basic salaries, one percentage point less than what was handed out last year, according to documents seen by Bloomberg News.
The memo didn’t specify any changes to allowances that include school fees as well as transport and housing contributions that can make up a significant portion of compensation. Emirates kept those benefits level this year, according to people familiar with the decision.
Emirates declined to comment on its compensation for employees.
As the regions’ largest airline group — with total employees of more than 120,000 — Emirates is a pacesetter in an industry where competition for talent has intensified. Startup carrier Riyadh Air is ramping up recruitment and investment, increasing pressure on established players to retain talent with attractive pay packages and benefits.
The decision on pay comes just two months after Emirates reported its best-ever financial results. The airline said in May that it had become the world’s most profitable carrier and paid out 22-week bonuses to staff to reflect that performance.
For Emirates cabin crew, the tax-free salaries include a base plus flying pay. The company also provides shared accommodation for them in Dubai that’s free. For this year, Emirates raised pay for cockpit and cabin crew by 5%, a one point increase, the memo showed.
At Emirates, average monthly pay for economy-class flight attendants is just under $3,000. The company employs almost 70,000 people at its namesake airline alone. By comparison, Qatar Airways Group has 55,000 employees, including the airline and auxiliary businesses like aviation services and the airport.
The airline industry has faced some headwinds, in large parts prompted by geopolitical issues. Leisure travel across the Atlantic has shown signs of weakness as cost-conscious travelers reconsider trips to and from the US. Airlines in the Middle East have also been forced to adjust their flight paths, going as far as briefly closing their air spaces, amid the military conflict between Israel and Iran in recent weeks.
In countries like the United Arab Emirates and Qatar, where a large portion of the workforce is made up of expatriates, companies often provide additional perks in order to maintain a competitive edge. Emirates has also continuously paid out a bonus to employees in recent years.
Last year, add-ons like housing support rose by as much as 15% and transport assistance increased by 4%, according to a separate memo. Emirati employees also received increases to the additional payments granted under the airline’s local workforce retention program, which aims to encourage nationals to stay in the private sector.
Dubai has become an attractive destination for job seekers, with more than 400,000 arrivals since 2020 pushing the population to more than 3.8 million. That’s led to a surge in rents and a scarcity of slots in top schools, driving up the cost of living. A study by consultancy Mercer has projected a 4% average salary rise this year, though estimates differ across firms and industries.
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