Emirates Sinks USD 5.5 Billion, First Loss In 30 Years

Emirates Airline posted a $5.5 billion annual loss, its first in more than 30 years after the coronavirus pandemic devastated the aviation industry. The massive loss has shown how the pandemic has ravaged the aviation industry in the past year.

The pandemic was so heavy on Emirates Airline that it had to seek  $3.1 billion from its owner, the government of Dubai, to help it survive the crisis. The airline was among the first to resume operations after massive lockdowns around the world.

“We were hit hard by the drop in demand for international air travel as countries closed their borders and imposed stringent travel restrictions,” said chairman and chief executive, Sheikh Ahmed bin Saeed Al Maktoum.

Over the fiscal year, Emirates carried 6.6 million passengers, down 88 percent from the same period in the previous year. “The Covid-19 pandemic continues to take a tremendous toll on human lives, communities, economies, and on the aviation and travel industry.”

Read More: Kenya Airways Registers Ksh 36.57 Billion In Losses

“Economies and companies that entered pandemic times in a strong position, will be better placed to bounce back.” The last time the airline reported a loss was in the 1987-88 financial year when it was starting up its operations.

Like other major carriers, Emirates began announcing heavy layoffs when its fleet of A380 superjumbos and Boeing 777s were grounded. Emirates Group’s employee base — which includes ground-handling firm Dnata — was slashed by 30.8 percent to 75,145 employees.

Read More:

• Emirates Refunded 1.72 Billion USD To Customers In 7 Months
• Emirates To Resume Flights To Accra Ghana And Abidjan

The story of Emirates makes that of the ailing Kenya Airways look like a joke. Kenya Airways has been making losses way before the coming of the Covid-19 pandemic but keeps on blaming its losses on the pandemic. As to whether Kenya Airways will turn into profitability, only those who run it know.