Emirates records its first losses in over 30 years.
Emirates announced Thursday that during the first half of fiscal year 2020-2021 the company recorded a net loss of 3,400 million dollars (2,883.9 million euros), the first drop in results in more than 30 years.
See also: Emirates SkyCargo starts loading operations with the A380.
In a statement, the airline of the United Arab Emirates (UAE) announced that these net losses represent a considerable fall compared to the profits of 235 million dollars (199.4 million euros) obtained in the same period last year, reported EFE.
The note also points out that the company’s income, which has been sustained mainly by the cargo business, fell by 75% to some 3,200 million dollars (2,715.1 million euros).
See also: Emirates asks some pilots to take 12 months unpaid leave.
“We started our current fiscal year in the midst of a global blockade, when air passenger traffic was literally at a standstill. In this unprecedented situation for the aviation and travel industry, Emirates Group recorded a half-yearly loss for the first time in more than 30 years,” Emirates Group Chief Executive Ahmed bin Said Al Maktoum said in the note.
According to the statement, the airline carried 1.5 million passengers between April 1 and September 30, 2020, representing a drop of 95% traffic over the same period last year.
For its part, operating costs of Emirates were reduced by 52%, in part by the 83% reduction in fuel costs, which the company attributed to the decline in oil prices, which were 49% lower compared to the same period last year.
However, Emirates’ EBITDA remained positive at around US$79 million (EUR 67 million) compared to US$3.6 billion (EUR 3.054 million) in the same period last year.
The company recorded these results despite the fact that its largest shareholder, the Government of Dubai, injected $2 billion (1,696.2 million euros) during the first half of the year to cushion the impact of the pandemic.
The Dubai airline, which has an outstanding network of connections between Asia, the Middle East, Europe and America, was one of the first to return to operation after the suspension of flights due to the coronavirus between March and May, and was a pioneer in taking all the preventive measures to encourage travel.
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