Emirates got an additional $ 1.1 billion in state support from Dubai after the collapse of a long -running trip due to the coronavirus pandemic that caused the airline’s first annual loss in more than three decades.
Governments pumped billions of dollars into airlines to keep them afloat during the pandemic and state-owned Emirates received $ 3.1 billion in equity injections from Dubai, including $ 2 billion revealed last year.
The airline reported a $ 5.5 billion loss on Tuesday for the year ended March 31, after earning $ 288 million in revenue last year, as revenue fell 66% to $ 8.4 billion.
It was the airline’s biggest annual loss, and it was only the third following losses in 1987-88 and 1985-86, it was the first year in operation, according to an Emirates representative.
Emirates says the government, the sole shareholder, will continue to support the airline that has transformed Dubai into a major international travel hub over the past three decades.
Fellow Gulf carrier Qatar Airways, which due to reporting consequences for the financial year ended March 31, also received $ 3 billion from the state-owned company.
Emirates and Qatar Airways do not have a domestic market to prevent border restrictions and closures introduced to stop the spread of COVID-19. While vaccination programs are putting some economies on track to recover from their slow launch around the world international airlines are at risk.
Emirates chairman Sheikh Ahmed bin Saeed Al Maktoum said the recovery from the pandemic disease could be fragmentary, wary of not predicting when the worst crisis in the industry would end.
Emirates said it only filled 44.3% of seats on flights last year, up from an average of 78.4% a year earlier. It carried 6.6 million passengers, the lowest in two decades.
The airline’s capacity was down 82.6% compared to last year as it centered operations around 146 Boeing (GIWALA) 777s – 19 of them were stripped of seats to carry more cargo as the pandemic force hit the demand for passengers.
Most of the airline’s 113 Airbus (AIR.PA) The A380s are already grounded. Four more have been removed from surgery and are unlikely to return before their scheduled retirement, it said.
Emirates Group, the company that owns the airline that combines other aviation and travel assets, saw revenue fall 65.8% to $ 9.7 billion and lost $ 6 billion, the first.
The group’s total workforce dropped 30.8% to 75,145, with the airline reducing its staff by nearly 20,000 to 40,801, according to the annual report.
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