Emirates posted losses for the first time in 30 years

The Emirates airline registered during the 2020-2021 fiscal year, which ended on March 31, losses of 5.5 billion dollars (about 4.5 billion euros) due to travel restrictions around the world due to the pandemic of the covid-19. This is its first financial year with losses in its more than 30-year history caused by a significant drop in revenue, according to the airline.

In the fiscal year 2019-2020, the UAE airline company, of the Emirates Group, which also includes the air service provider company Dnata, obtained a profit of 288 million dollars (237 million euros).

The group’s airline revenue during the last year fell 66% to $ 8.4 billion (€ 6.9 billion) “due to the temporary suspension of passenger flights at its hub in March 2020 and global travel restrictions still in force “

Emirates has detailed that its total passenger and cargo transport capacity decreased in the period by 58% to 24,800 million ton-kilometers and that its fleet at its closure had 259 aircraft after having received three new Airbus A380s and having left 14 aircraft out of service.

The Emirates Group has indicated that, despite everything, its cash balance amounted to 5.4 billion dollars (4.45 billion euros), 23% less than a year earlier. He also recalled that it received a capital injection of 3,100 million dollars (about 2,500 million euros) from its main shareholder, the Government of Dubai and that Dnata benefited from aid for 800 million (650 million euros) in different programs of support to the industry.

“This helped us maintain operations and retain the vast majority of our talent pool,” he said, while acknowledging that his workforce had been reduced by 31% to 75,145 employees.

The Emirati group has pointed out that it had managed to save some 7.7 billion dollars (6.35 billion in euros) through the restructuring of its debt, the renegotiation of contracts, the evaluation of processes and the consolidation of operations.

Likewise, during the last fiscal year it has invested 1,300 million dollars (1,070 million euros) “in new aircraft and facilities, the acquisition of companies and the latest technologies to position the business for recovery and future growth”

Leave a Reply

Your email address will not be published. Required fields are marked *