June 15, 2021: The Emirates Group received a cash infusion worth $1.31 billion by the Dubai government following a lapse in longer haul journeys, the airline’s most important business segment, after suffering its first loss in decades.
The airline said the deficit for the fiscal year ended March 31 was 22.1 billion dirhams ($6.6 billion), while revenue fell 66 percent to 35.6 billion dirhams.
The state-owned company received a capital injection of 11.3 billion dirhams. The UAE has been particularly hard hit by the epidemic, with large-scale border restrictions preventing travelers from traveling across the continent where carriers specialize. The airline has based most of its fleet on Airbus SE A380 super airbuses, while its Boeing company 777s are struggling with less passenger load and especially cargo. The airlines and the hubs they serve are wrestling with an uncertain approach as governments slowly try to reopen travel with flights to the UAE. Two of the most important markets for the airline are India and the United States.
The pandemic has affected the aviation industry worldwide. Air France’s LM and Deutsche Lufthansa AG have lost about $ 8 billion a year and need government assistance, and the UAE has cut its workforce by a third to cut costs. Emirates Airlines reported a loss of 20.3 billion dirhams compared to a profit of 1.1 billion dirhams last year, excluding the ground handling unit, DNata, which lost 1.8 billion dirhams compared to a profit of 618 million dirhams.
Despite the majority of the A380 super-jumbo fleet being grounded, Emirates kept its order book for 200 aircraft “unchanged at this time.” The planned purchases include 115 of the new Boeing 777X plane, for which it is the biggest customer.
Emirates President Tim Clark has repeatedly lambasted Boeing for delaying the 777X program and has raised concerns over the model’s performance. Bloomberg reported in February that Emirates could swap as many as a third of its 115 commitments for the 777-9 to the smaller Boeing 787 Dreamliner.
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