This is a historic event for the Emirates GroupThis was the first year of losses for the group in more than thirty years. The group has recorded its first year of losses in over 30 years. These losses were caused by a significant fall in sales in its 2020-21 financial year.
In its 2020-21 annual report, the Emirates Group posted a loss of six billion US$ compared with a profit of 456 million the previous year. Le sales amounted to $9.7 billion, down 66 1TP3Q compared with 2019/20.
According to Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive Officer of Emirates Airline and Emirates Group, " Emirates and dnata have been hit hard by falling demand for international air travel as countries close their borders and impose strict travel restrictions. Emirates received a 3.1 billion capital injection from our shareholder. This has enabled us to maintain our operations and retain the vast majority of our workforce.s. "
For the first time in its history, however, redundancies were implemented, affecting 31 % of employees. In fact, they followed a 58% drop in total passenger and freight capacity. This decline had followed the closure for nearly eight seall passenger flights in March.
A recovery judged to be uneven around the world
Emirates has also had to implement a number of measures which have resulted in savings of almost 2.1 billion dollars. Total operating costs were down 46 % on the previous year. The airline's fuel bill was down 76 % on the previous year.
The company's situation is now improving with the gradual lifting of restrictive measures around the world. From zero scheduled passenger flights at the start of the financial year, thet the end of March, the company announced a network of more than 120 destinations by 31 March 2021.. Emirates has demonstrated its ability to adapt and respond to challenges. It has also demonstrated the resilience of its people and its business model.
However, the carrier is cautiously optimistic. According to the Chairman of Emirates, " no one knows when the pandemic will be over and we know that the recovery will be uneven. Economies and businesses that have entered the pandemic from a position of strength will be better placed to bounce back. With Dubai's stated ambitions to develop economic activity and build a city for the future, I am confident that the Emirates Group will recover and be even stronger in the future."
