Emirates Group Announces A Loss – To The Tune Of AED22 Billion
The pandemic took its toll on the entire world, but it’s safe to say the airline industry was one of the industries that took the biggest hit.
In a statement released today, the Dubai group announced an annual loss of AED22.1 billion, the first non-profitable year in over three decades. The loss is attributed to the COVID-19 pandemic, which saw a significant drop in demand for travel worldwide.
In the same year, there were redundancies across the group and the workforce was reduced by 31% to 75,145 employees.
The group reported revenue of AED 35.6 billion and ends the year with a ‘solid’ cash balance.
Emirates Group ends the year with a ‘solid cash balance’ of AED19.8 billion
Emirates airline reported a LOSS of AED 20.3 billion down from AED 1.1 billion PROFIT in the previous year
The significant drop in revenue is fully attributed to the impact of COVID-19 related flight and travel restrictions throughout its entire financial year 2020-21.
Revenue declined by 66% to AED30.9 million and the airline fleet size was reduced by 11 aircraft.
Emirates got a cash injection of AED11.3 BILLION from Dubai Government
The COVID-19 pandemic continues to take a tremendous toll on human lives, communities, economies, and on the aviation and travel industry. 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.
Our top priorities throughout the year were: the health and wellbeing of our people and customers, preserving cash and controlling costs, and restoring our operations safely and sustainably. Emirates received a capital injection of AED 11.3 billion (US$ 3.1 billion) from our ultimate shareholder, the Government of Dubai, and dnata tapped on various industry support programmes and availed a total relief of nearly AED 800 million in 2020-21. These helped us sustain operations and retain the vast majority of our talent pool. Unfortunately, we still had to make the difficult decision to resize our workforce in line with reduced operational requirements.
From HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group