Emirates Airline posts first loss in three decades as covid slams travel

What Happened : The Dubai-based airline -Emirates recorded a loss of $5.5 billion for 2020-21 as Covid-19 continues to wreak havoc over the aviation industry. This is the airline’s first documented loss in more than three decades. Sheikh Ahmed bin Saeed Al Maktoum, Chairman, and Chief Executive, Emirates Airline and Group said that “In 2020-21, Emirates and Dnata were hit hard by the drop in demand for international air travel as countries closed their borders and imposed stringent travel restrictions.”

The Response : Emirates previously received a capital injection of $3.1 billion as the Dnata group tapped into various industry relief programmes. While this helped to sustain their operations initially it was not enough. The Gulf carrier has since grounded most of its fleet of Airbus SE A380 aircraft and the Boeing Co. 777s is struggling with low passenger loads as seating capacity has decreased to 83 percent. The airline was also forced to reduce its total workforce by 31 percent to 75,145 employees. Consequently, as the pandemic lingers on Emirates and Dnata have started restructuring and looking for potential liquidity within the financial market.

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