NEWS ANALYSIS EMIRATES | A YEAR AT EMIRATES Emirates scores 32nd consecutive year of profit with 21% spike but warns Covid-19 will have a significant impact on its 2020-21 performance. Emirates airline turned a profit of $288 million in its last financial year, a 21% improvement on 2018-19, and its 32nd consecutive year of profits. But the effects of the ongoing Covid-19 crisis are beginning to show with chairman HH Sheikh Ahmed bin Saeed Al Maktoum predicting that the pandemic will “have a huge impact” on the airline’s 2020-21 performance. In 2019-20, the group collectively invested $3.2 billion in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and employee initiatives, a decrease following last year’s record investment spend of $3.9 billion. At the 2019 Dubai Air Show in November, Emirates placed a $16 billion order for 50 A350 XWBs, and an $8.8 billion order for 30 Boeing 787 Dreamliner aircraft. With first deliveries expected in 2023, these new aircraft will add to Emirates’ current fleet mix, and provide deployment flexibility within its long-haul hub model. Sheikh Ahmed said: “The Covid-19 pandemic will have a huge impact on our 2020-21 performance, with Emirates’ passenger operations temporarily suspended since 25 March, and dnata’s businesses similarly affected by the drying up of flight traffic and travel demand all around the world. We continue to take aggressive cost management measures, and other necessary steps to safeguard our business, while planning for business resumption. We expect it will take 18 months at least, before travel demand returns to a semblance of normality. In the meantime, we are actively engaging with regulators and relevant stakeholders, as they work to define standards to ensure the health and safety of travellers and Revenues at the airline slipped by 6% in 2019-20, down to $25 billion compared to the previous year, partly due to the temporary runway closure at Dubai International and because of the suspension of flights in March caused by the Covid-19 crisis. Sheikh Ahmed said: “For the first 11 months of 2019-20, Emirates and dnata were performing strongly, and we were on track to deliver against our business targets. However, from mid-February things changed rapidly as the Covid-19 pandemic swept across the world, causing a sudden and tremendous drop in demand for international air travel as countries closed their borders and imposed stringent travel restrictions.” A S T F A F C 21% INCREASE IN AIRLINE PROFITS 14 | LOGISTICS MIDDLE EAST JULY-AUGUST 2020 www.logisticsmiddleeast.com
© PressReader. All rights reserved.