Monday, May 20, 2024

Emirates backed by Dubai after its first loss in 33 years


Emirates backed by Dubai after first loss in 33 years

Emirates backed by Dubai after first loss in 33 years

(Official correction to Official 12 – read the first historic loss for the team)

par Alexander Cornwell

Dubai (Reuters) – Emirates has received an additional $ 1.1 billion ($ 907 million) in financial assistance from Dubai after suffering its first annual loss in more than three decades due to an airline crash caused by an epidemic.

Emirates, which owns Dubai Emirates, has received a total of $ 3.1 billion in public financial assistance since the initial payment of $ 2 billion announced last year.

The airline, which depends on international travel, reported a $ 5.5 billion ((4.54 billion) annual loss for the fiscal year ending March, compared to a profit of $ 288 million the previous year.

Revenue fell 66% to 4 8.4 billion and passenger numbers fell 88.3% to 6.6 million.

In 36 years in business, this is Emirates’ first annual loss since fiscal 1987-88 and the lowest number of passengers in twenty years.

Emirates does not have the internal market to allow itself to defend itself against restrictions and border closures caused by the corona virus infection, and this has plunged the aviation industry into one of the most severe crises in its history.

Emirates CEO Sheikh Ahmed bin Saeed Al Maktoum warned on Tuesday that the recovery from the corona virus infection would be irregular.

Nailed to the ground

Airlines will have to wait years to recover from the epidemic, and long-haul international flights are predicted to be very difficult to return to.

Emirates filled only 44.3% of seats last year, compared to an average of 78.4% in the previous fiscal year.

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The epidemic-causing travel recession has led Emirates to stall most of its 113 Airbus A380 aircraft and focus on rebuilding its network using its 146 Boeing 777 aircraft, with passenger capacity down 82.6% last year.

The company added that four of its A380s have been withdrawn from the Navy and are unlikely to return before the planned layoffs next fiscal year.

The Emirates Group, which includes aircraft and other aviation and travel assets, saw its revenue fall 65.8% to $ 9.7 billion and record a loss of $ 6 billion, its first record.

The group’s employees fell 30.8% to 75,145, with 20,000 fewer jobs within the airline.

(French edition by Tacomara Magos, edited by Plantin Honald)

Bill Dittman
Bill Dittman
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