Emirates swings to first half-year loss in more than 30 years

Emirates reported an H1 loss for the first time in more than 30 years as the Dubai airline’s revenues slumped about 75% on coronavirus travel restrictions. The government-owned carrier swung to a $3.4b loss in the first six months of its financial year, compared to a $235m profit in the same period last year. Sheikh Ahmed bin Saeed Al Maktoum, Emirates’ CE, described the pandemic-induced halt to air travel as “unprecedented” for the aviation and travel industries. “We began our current financial year amid a global lockdown when air passenger traffic was at a literal standstill,” he said Thursday. At Emirates Group, which also includes ground handling, revenues declined 74% to $3.7b in H1 of its 2020-2021 financial year, pushing it to a half-year loss of $3.8bn. The group, which has implemented widespread redundancies in response to the pandemic, said headcount had been reduced by 24% to about 81,000 as of September 30. Emirates has tapped cash reserves and shareholder and bank funding to sustain the business, including a $2b injection from Dubai’s government. The group’s cash position declined by $1.4b to reach $5.6b in H1. But by pivoting to cargo operations as passenger traffic declined, Emirates managed to recover revenues from zero to 26% of its position in the same time last year. The airline carried 1.5m passengers during the first six months, down 95% on the previous year. Cargo volume declined 35% while yield rose 106% on strong freight demand.<br/>