Emirates Makes A Loss Due to Crisis for the First Time in 30 Years
Dubai aviation group Emirates Group has made a loss for the first time in more than thirty years. The group lost 3.8 billion dollars in the first half of the financial year.
The concern was severely affected by the corona crisis that literally brought air traffic to a halt.
Emirates Group sales in the first six months of the fiscal year ending September reached $ 3.7 billion. That is a decrease of 74 percent compared to the same period last year. From April to September, Emirates carried 1.5 million passengers, 95 percent less than a year earlier.
At the same time, the company was able to increase freight traffic by 65 percent. Fuel costs were about 83 percent lower than the same period last year. This was partly due to the enormous fall in oil prices.
“In this unprecedented situation for the airline and travel industry, Emirates Group posted a six-month loss for the first time in more than 30 years,” said the airline’s chairman and director, Sheikh Ahmed bin Saeed Al Maktoum in a statement.
“No one can predict the future, but we expect a strong recovery in travel demand once a corona vaccine becomes available and we are preparing for that upswing.”
The driver also said the airline company has been able to leverage its own strong cash reserves and that the Dubai government will support the company financially. For example, the shareholder invested 2 billion dollars in Emirates in the first six months.
Emirates Group’s workforce has been significantly reduced by 24 percent as of March. In September, more than 81,000 people were still employed at the aviation group.