Emirates Group Posts $5.5 Billion Loss for the First Time in 30 Years

Published June 15th, 2021 - 10:00 GMT
Emirates Group Posts $5.5b Billion Loss for the First Time in 30 Years
Dubai’s government has stepped in to assist Emirates financially. (Shutterstock)
Emirates Group revenues fell some 66 percent to $9.7 billion over the year

Emirates reported a full-year loss of $5.5 billion, the first time it has fallen into the red in more than 30 years.

The results highlight the devastating impact of the pandemic on the carrier that has helped Dubai become one of the world’s most important international aviation hubs.

Overall employee numbers for the wider Emirates Group, which includes dnata, fell by more than 33,000 over the year as its headcount fell 31 percent to about 75,000. It carried 6.6 million passengers over the year, down 88 percent on a year earlier.

“No one knows when the pandemic will be over, but we know recovery will be patchy,” said Sheikh Ahmed bin Saeed Al-Maktoum, the chairman and CEO of Emirates Airline and Group. “Economies and companies that entered pandemic times in a strong position, will be better placed to bounce back.”
While the pandemic has had a brutal impact on airlines worldwide, the crisis has impacted carriers and airports differently, depending on their route and passenger profiles. Because Emirates relies heavily on international travel without a domestic network, it has not benefited from the bounce back in domestic airline travel in other parts of the world, such as the US and China.

“It is not surprising that Emirates has reported a substantial loss and as with all airlines recovery will take an extended time,” aviation consultant John Strickland told Arab News. “However short term it has been able to benefit from the cargo capabilities of its 777-300ER’s. It is already evaluating options for the future shape of its fleet and network as new aircraft types enter its fleet and will extend the close partnership with flydubai which also increases its flexibility for network development options.”
Emirates Group revenues fell some 66 percent to $9.7 billion over the year. The company said it had received a capital injection of 11.3 billion dirhams ($3.1 billion) from its ultimate shareholder, the government of Dubai. Its dnata unit, which includes ground handling, travel services and catering, also received 800 million dirhams in relief, it said.
Emirates has cut costs across the group by renegotiating contracts and restructuring financial obligations which resulted in estimated savings of 7.7 billion dirhams for the year, it said.
Sheikh Ahmed said the airline aimed to recover its full operating capacity as quickly as possible.
“Together with Dubai’s undiminished ambitions to grow economic activity and build a city for the future, I am confident that Emirates and dnata will recover and be stronger than before,” he said.
Emirates’ total passenger and cargo capacity declined by 58 percent. It received three new A380 aircraft during the financial year and phased out 14 older aircraft comprising of 9 Boeing 777-300ERs and 5 A380s, leaving its total fleet count at 259 at the end of March.
Its order book for 200 aircraft remains unchanged.

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