عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Emirates Airline Says Its on ‘Recovery Path’

Emirates airliners are seen on the tarmac in a general view of Dubai International Airport in Dubai, United Arab Emirates January 13, 2021. REUTERS/Abdel Hadi Ramahi
Emirates airliners are seen on the tarmac in a general view of Dubai International Airport in Dubai, United Arab Emirates January 13, 2021. REUTERS/Abdel Hadi Ramahi
TT
TT

Emirates Airline Says Its on ‘Recovery Path’

Emirates airliners are seen on the tarmac in a general view of Dubai International Airport in Dubai, United Arab Emirates January 13, 2021. REUTERS/Abdel Hadi Ramahi
Emirates airliners are seen on the tarmac in a general view of Dubai International Airport in Dubai, United Arab Emirates January 13, 2021. REUTERS/Abdel Hadi Ramahi

Emirates Chairman Sheikh Ahmed bin Saeed Al Maktoum said there’s still some way to go before operations could be restored to pre-pandemic levels and return to profitability.

“There's still some way to go before we restore our operations to pre-pandemic levels and return to profitability, we are well on the recovery path with healthy revenue and a solid cash balance at the end of our first half of 2021-22, he stated.

"As we began our 2021-22 financial year, Covid-19 vaccination programs were being rolled out at an unprecedented scale around the world. Across the Group, we saw operations and demand pick up as countries started to ease travel restrictions. This momentum accelerated over the summer and continues to grow steadily into the winter season and beyond,” Sheikh Ahmed added.

Group revenue equaled 24.7 billion dirhams ($6.7 billion) for the first six months of 2021-22, up 81 percent from 13.7 billion dirhams ($3.7 billion) during the same period last year.

The airline reported a net loss of 5.7 billion dirhams ($1.6 billion) during H1 2021-2022, showing huge progress compared to last year in which losses totaled 14.1 billion dirhams ($3.8 billion).

The Group also reported an EBITDA of 5.6 billion dirhams ($1.5 billion), a dramatic turnaround from a negative 43 million dirhams ($12 million) EBITDA during the same period last year, illustrating its strong return to operating profitability.

"Our ability to pivot and pull through the toughest period in our history to date can be attributed to Emirates' and dnata's strong brands. We intend to continue investing in these core areas to take our business into the future, together with the leaner processes and new technology capabilities that we've implemented in the past months," Sheikh Ahmed added.

The Emirates Group tapped on its cash reserves, and access funding through its owner and the broader financial community to support its business needs. In the first half of 2021-22, its owner further injected 2.5 billion dirhams ($681 million) into Emirates by way of an equity investment.

According to the airline, two new Airbus A380s were delivered during the first six months of its 2021-22 fiscal year.

Most Viewed

 
 
Business

Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
TT
TT

Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.