UAE flag carrier and A380 operator extraordinaire Emirates released its annual financial results on Tuesday morning. As expected during COVID, and in particular for an airline so heavily dependent on long-haul and transfer traffic, it makes for grim reading. For its first non-profitable years in over three decades, Emirates reported a loss of AED 20. 3 billion (US$ 5. 5 billion).
Began with zero scheduled passenger flights
In comparison, for the previous year, which ended just on the cusp of world aviation shutting down fleet by fleet, the airline reported a profit of AED 1 . 1 billion (US$ 288 million). The end of 2018-19, on the other hand, closed with a profit associated with AED 2. 3 billion dollars (U$626 million).
Revenue over the twelve months ending on March 31st declined by 66% to AED 30. 9 million (US$ 8. 4 billion), partly attributed to the eight-week total passenger flight suspension in and out of Dubai in late March 2020, which meant zero scheduled flights for the flight.
Emirates’ total passenger and cargo capacity was down 58% in order to 24. 8 billion available tonne kilometers (ATKM). Within total, it carried 6. 6 million passengers, down by 88% from the particular year before, and seat capacity was down by 83%.
The particular airline also reduced its overall fleet by 11 aircraft, as it phased out 14 older planes and took delivery regarding three new Airbus AIRBUS380 superjumbos. Emirates let go of nine Boeing 777-300ERs plus five A380, which left its total fleet at 259 at the end of March.
Meanwhile, the carrier asserts that its orders for 200 aircraft remain unchanged for now. Emirates also stated that it invested AED 4. 7 thousand (US$ 1. 3 billion) in new aircraft, facilities, and technologies throughout typically the year.
Meanwhile, the complete loss for Emirates Groups as a whole was AED 22. 1 tera- (US$ 6. 0 billion). The state-owned Group, which includes Emirates with Emirates SkyCargo, and Emirates Flight Catering, as well as aviation service provider dnata, saw a overall decline of revenue involving 66% compared to last year’s results, ending in AED 35. 6 billion (US$ 9. 7 billion). The Group’s cash balance was AED 19. 8 billion (US$ 5. 4 billion), down by 23%.
Cargo largest revenue contributor
Emirates SkyCargo made the most of the chaotic year and contributed 60% from the airline’s total transport revenue. It took over no less than 19 passenger Boeing 777-300ERs which usually it modified into what the carrier called ‘mini-freighters’ to meet the rapidly growing demand.
In October, the airline’s cargo division set up a COVID-19 vaccine-dedicated airside hub within Dubai. It also partnered with UNICEF to transportation vaccines to developing nations. In total, Emirates SkyCargo ended the year with AED 17. 1 billion dollars (US$ 4. 7 billion) in revenue – an increase of 53% from the previous 12 months. Freight yield per Freight Tonne Kilometer (FTK) increased simply by 88%.
Workforce shrunk by 31%
Despite leveraging a capital injection of AED 11. 3 billion (US$ 3. 1 billion) through the Government of Dubai, and an additional AED 800 million (US$ 218 million) for dnata from industry support programs, redundancies were a fact across all parts of the business. Emirates Group had for you to let go of 31% of its workforce, ending the year with 75, 145 employees.
Meanwhile, His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates, is confident in his airline’s recovery and future growth.
“Until 2020-21, Emirates and dnata have had a track record of growth and profitability, based on solid company models, steady investments in capability and infrastructure, a strong drive for innovation, and a deep talent pool led by simply a stable leadership team. These fundamental ingredients of our success remain unchanged. (…) I am confident that Emirates and dnata will recover and be stronger than before. ”
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