Emirates posts first annual loss in over 30 years

Emirates posts first annual loss:

Emirates posts Airlines reported a loss of Dh 20.3 billion for the fiscal year ended March 31, 2021, compared to a profit of Dh 1.1 billion last year, which recorded its first loss in 30 years due to the impact of the Coronavirus. pandemic in the aviation sector.

With significantly reduced and limited capacity allocation in most markets, Emirates’ total revenue declined 66% to DH 30.9 billion.

The Covid-19 pandemic continues to have a major impact on lives, communities, economies, and the aviation and travel industries. In 2020-21, Emirates and dnata were hit hard by declining demand for international air travel as countries closed their borders and imposed strict travel restrictions said Sheikh Ahmed bin Saeed Al Maktoum, President, and CEO of Emirates Airline and Group.

No one knows when the pandemic will end, but we know the recovery will be uncomfortable. The economies and companies that have been strong in times of pandemics will recover better, Sheikh Ahmed said.

The Dubai-based airline has also canceled a one-time fee of DH 710 million for some planes currently grounded and is not expected to return to service until the next fiscal year when they retire.

The largest international passenger airline carried 6.6 million passengers, down 88% in 2020-21, with an 83% drop in capacity.

It took three new A380s into service and flew 14 older aircraft, bringing the total fleet to 259 at the end of March. The order book for 200 aircraft remains unchanged. At the end of March 2021, there were 120 destinations.

Passengers, less payload

The Emirates’ total passenger and cargo capacity declined by 58% to 24.8 billion available tonne-kilometers (ATKM) at the end of 2020-21, due to flight and travel restrictions related to the pandemic.

Total operating expenses decreased by 46% compared to the previous financial year. The fuel bill decreased by 76% to 6.4 billion Dh, mainly due to a 69% reduction in line with the capacity reduction.

With strong demand for air travel throughout the year, Emirates SkyCargo generated sales of Dh 17.1 billion, up 53% from last year.

Emirates’ hotel portfolio posted revenue of DH 296 million, down 49 per decline

In addition to financing DH 14.5 billion for aircraft and general commercial purposes in 2020-21, Emirates has already received offers to finance the delivery of two aircraft to be delivered in 2021-22, and Emirates continues to provide the financial market for additional liquidity. provides coverage against the potential impact of Covid-19 on the company’s short-term cash flow.

Emirates ended the year with Dh 15.1 billion.

Loss of Emirates Group

Meanwhile, the Emirates Group posted a loss of Dh 22.1 billion in the fiscal year 2020-21, compared to a profit of Dh 1.7 billion in the previous year.

The group’s revenue was AED 35.6 billion, 66% lower than last year’s results. The cash balance was Dh 19.8 billion, down 23% from the previous year, mainly due to weak demand due to various trade and travel restrictions related to the pandemic.

In 2020-21, the Dh Group invested $4.7 billion in new aircraft and facilities, corporate acquisitions, and the latest technologies to position the company for future recovery and growth.

Combined with Dubai’s unchanged ambitions to revitalize economic activity and build a city for the future, I am confident that Emirates and dnata will recover and be stronger than before, he added.

Next year, Emirates aims to restore full operational capacity as soon as possible, said Sheikh Ahmed

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