You are here: Home » International » News » Companies
Business Standard

Emirates posts first loss in three decades as coronavirus slams travel

The company received a capital injection of 11.3 billion dirhams ($3.1 billion) from its owner, the government of Dubai.

Topics
Emirates Airline | Coronavirus | Dubai

Layan Odeh | Bloomberg 

Photo: Bloomberg
Photo: Bloomberg

Emirates Group, owner of the world’s largest long-haul airline prior to the Covid-19 pandemic, slumped to a 22.1 billion dirhams ($6 billion) loss in the financial year ended March as the virus upended demand for air travel.

The state-owned company received a capital injection of 11.3 billion dirhams ($3.1 billion) from its owner, the government of Its dnata unit tapped industry support programs and availed relief of nearly 800 million dirhams, Chairman Sheikh Ahmed Bin Saeed Al Maktoum said.

“Emirates and dnata were hit hard by the drop in demand for air travel as countries closed their borders and imposed stringent travel restrictions,” Sheikh Ahmed said.

Emirates Group reduced total workforce by 31% to 75,145 employees.

ALSO READ: Travel likely to remain subdued till 2021-end due to Covid curbs: Emirates

Results

  • reported a loss of 20.3 billion dirhams down from 1.1 billion dirhams profit in the previous year
  • Revenue at the airline declined 66% to 30.9 billion dirhams
  • Dnata reported a loss of 1.8 billion dirhams vs 618 million dirhams profit

Emirates has been hit especially hard by the pandemic, with widespread border curbs making it impossible for people to make the inter-continental journeys in which it specializes.

The Gulf carrier responded by grounding most of its fleet of Airbus SE A380 superjumbos, while its Boeing Co. 777s are struggling with lower passenger loads and mainly transporting cargo.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, June 15 2021. 14:09 IST
RECOMMENDED FOR YOU
.