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Emirates Records Annual Loss of US$6.0 billion, First in 30 Years

Our Bureau - : Jun 16, 2021 - : 12:57 pm

The Emirates Group, which comprises Emirates, the world’s largest international airline,  and its ticketing and ground handling arm Dnata, has suffered a US$6.0 billion (Dh22.1 billion) net loss in 2020-2021 financial year ending March 2021.

This is the airline’s first loss in more than three decades. The airline had reported a US$456 million profit for the 2019-2020 financial year. The significant drop in revenue is because of the impact of the COVID-19 pandemic on the aviation industry and continuing flight and travel restrictions.

The Group’s revenue was AED 35.6 billion (US$ 9.7 billion), a decline of 66% over the last year. Its cash balance was AED 19.8 billion (US$ 5.4 billion), a decrease of 23% from last year.

”The COVID-19 pandemic continues to take a tremendous toll on human lives, communities, economies, and on the aviation and travel industry,” said Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group. “In 2020-21, Emirates and Dnata were hit hard by the drop in demand for international air travel as countries closed their borders and imposed stringent travel restrictions.”

Because of the impact of the pandemic, the Group was forced to reduce its workforce by 31% to 75,145 employees, representing over 160 different nationalities.

In 2020-21, the Group collectively invested US$1.3 billion (Dh4.7 billion) in new aircraft and facilities, the acquisition of companies, and the latest technologies to position the business for recovery and future growth. Keeping a tight control on costs, across the Group, financial obligations were restructured, contracts renegotiated, processes examined and operations consolidated. The various cost reduction initiatives returned an estimated saving of AED 7.7 billion during the year.

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