Emirates expects operations to fully recover next year

Emirates airline expects its operations to return to full capacity next year as travel and tourism demand recovers.

The airline is in “good shape” in terms of moving to the next stage of recovery, it said.

Next year will be a “milestone” for the company’s operations as they return to pre-coronavirus levels, chief operating officer Adnan Kazim said yesterday.

Emirates is currently operating at 70 per cent of its pre-pandemic capacity and that will increase to 80 per cent before the end of the summer, he said. It expects capacity to rise to 85 per cent by the beginning of its winter schedule, which will commence in November.

“The focus remains on recovering the Emirates’ network and capacity, which will be the core,” Mr Kazim said.

“For us, next year will be the year of full recovery – 100 per cent. That is what we aim for.”

The company posted a loss of Dh20.3 billion ($5.5bn) in the 2020-2021 financial year after the pandemic hit the aviation industry. Most global airlines received bailouts or capital injections to cope with the worst crisis in the sector’s history.

Emirates also received a capital injection of $3.1bn from the Dubai government. Airport services provider dnata received $218 million from authorities during that financial year.

However, demand for travel has made a strong rebound and the momentum has carried into this year.

Emirates is on track to record a “good set of results” for its financial year ended March 31, after losses narrowed over the past 12 months.

The airline expects to return to profit in the next fiscal year, Emirates president Tim Clark said last month.

Mr Kazim said there were signs of recovery in terms of seat factor and demand.

“It is very positive and that is happening in all the sectors of the business that we are in today,” he said.

Emirates currently serves about 130 destinations, more than 90 per cent of its network, and this is set to return to pre-pandemic levels next year.

The airline has about 140 Boeing 777 aircraft and 70 Airbus A380s in operation – a number which Mr Kazim expects to “ramp up before the end of the financial year”.

It is engaged in talks with plane makers Boeing and Airbus over delays in the delivery of Boeing 787 and 777X jets, and Airbus A350 planes that it has on order.

Emirates currently serves more than 90 per cent of its network and this is set to return to 100 per cent next year