Emirates airline posts first loss in more than 30 years

DUBAI: Dubai-based Emirates airline on Thursday posted its first loss in more than three decades, saying it had been badly hit by the coronavirus lockdown that brought air transport to “a literal standstill”. The Middle East’s largest carrier said it suffered a $3.4 billion loss in the six months to September, prompting its parent group to slash its workforce by a quarter.

“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,” the airline’s chairman and chief executive, Sheikh Ahmed bin Saeed Al Maktoum said in a statement. “No one can predict the future, but we expect a steep recovery in travel demand once a Covid-19 vaccine is available, and we are readying ourselves to serve that rebound.”

The last time the airline reported a loss was in the 1987-88 financial year, when it was starting up its operations.

The airline, which resumed flights in May after a suspension of almost two months, saw revenue fall 75 percent to $3.2 billion. Over the half-year, it carried just 1.5 million passengers, down 95 percent from the same period last year.

The carrier said that its bottom line found some support with a “strong cargo business” as it repurposed its fleet to accommodate the need for supplies around the globe, including medical equipment.

“As passenger traffic disappeared, Emirates and (air services arm) dnata have been able to rapidly pivot to serve cargo demand and other pockets of opportunity,” Sheikh Ahmed said.

“This has helped us recover our revenues from zero to 26 percent of our position same time last year.”

Before the pandemic hit, Emirates served a global network spanning over 158 destinations in 84 countries. Currently, it flies to 99 destinations.—AFP