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Emirates Closes Fiscal Year With A Loss of Billions

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Emirates airline closed its fiscal year 2020-2021 with a loss of $6 billion. Like the rest of the sector, the company from the United Arab Emirates was struggling with a major drop in passengers as a result of the corona measures and travel restrictions.

 

A year earlier, there was still a profit of 456 million dollars.

Emirates saw its revenue fall 66 percent in the twelve months to March this year to $9.7 billion. To get through the crisis, Emirates received 3.1 billion dollars in support from the government of Dubai, the sole shareholder of the group. As a result, the freight division performed well.

Emirates has had to make some tough decisions; Sheikh Ahmed bin Saeed Al Maktoum heads the airline. For the first time in society’s existence, employees had to be forced to say goodbye to costs to reduce costs. As a result, the workforce has fallen by almost a third to 75,145 employees.

Emirates also worked on cost control, whereby contracts were negotiated with suppliers. Work processes were also tackled, and the fleet of aircraft was reduced. All in all, the efforts made are saving Emirates more than $2 billion annually. Meanwhile, Emirates also invested in new aircraft and other facilities. This involved an amount of 1.3 billion dollars.

Ahmed bin Saeed Al Maktoum hopes for a quick recovery from the crisis, although he acknowledges that this will not be without a struggle. The airline has an outstanding order for 200 new aircraft. But, according to the CEO, that order book will not be changed.

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