Emirates Group records first half-yearly loss in 30 years

The Emirates Group on Thursday announced its half-year results for its 2020-21 financial year ending on September 30, 2020.

Its revenue was $3.7 billion for the first six months of 2020-21, down 74% from $14.5 billion during the same period last year, reads a press release.

This dramatic revenue decline was due to the Covid-19 pandemic which brought global air passenger travel to a halt for many weeks as countries closed their borders and imposed travel restrictions. As part of pandemic containment measures, Emirates and dnata’s hub in Dubai also suspended scheduled passenger flights for 8 weeks during April and May.

The group is reporting a 2020-21 half-year net loss of $3.8 billion.

Its cash position on September 30, 2020 stood at $5.6 billion, compared to $7 billion as on March 31, 2020.

Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of Emirates Airline and Group, said: “We began our current financial year amid a global lockdown when air passenger traffic was at a literal standstill. In this unprecedented situation for the aviation and travel industry, the Emirates Group recorded a half-year loss for the first time in over 30 years.”

Emirates Airlines, in the first half of 2020-21, incurred a loss of $3.4 billion, compared to last year’s profit of $235 million. Emirates’ revenue, including other operating income $3.2 billion, was down 75% compared to the $12.9 billion recorded during the same period last year.

Emirates carried 1.5 million passengers between April 1 and September 30 this year, down 95% from the same period last year. The volume of cargo uplifted at 800,000 tonnes has decreased by 35% while yield has more than doubled by 106%.

Emirates’ operating costs reduced by 52% against the overall capacity decrease of 67%. Fuel costs were 83% lower compared to the same period last year.

Overall loss for the other major concern, dnata, is $396 million, compared to last year’s profit of $85 million. Dnata’s revenue, including other operating income, was $644 million — a 68% decline compared to $2 billion last year.

Dnata’s businesses in ground handling, catering and travel services were heavily impacted by the Covid-19 pandemic as customer airlines cut their flight schedules and service requirements or suspended operations entirely, and dynamic border restrictions around the world curbed travel demand and bookings.