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Emirates Group Cuts Annual Losses, Expects Profitability by 2023

Emirates Group Cuts Annual Losses, Expects Profitability by 2023

Saturday, 14 May, 2022 - 07:45
Over the fiscal year, Emirates carried 19.6 million passengers, up from 6.6 million in the same period of the previous year. (Asharq Al-Awsat)

The Emirates Group released on Friday its 2021-22 annual report, which showed strong recovery across its businesses.

Emirates airline announced a “significantly reduced” annual loss of AED3.8 billion ($1.1 billion) compared to AED22.1 billion ($6 billion) in 2021, as pandemic travel restrictions ease.

It said revenues were up 86% to AED66.2 billion ($18.1 billion).

The airline, which only operates international services, reported a 91% jump in revenue to $16.1 billion for the year ended March 31 as passenger numbers tripled to $19.6 million.

The report indicated an improved and strong cash balance of AED25.8 billion ($7 billion).

The increase in the roll out of vaccines globally, lifting of lockdowns and reduction in the severity of the virus, international travel restrictions eased and customer demand picked up, the report noted.

The Group's global airport and travel services business data made an AED110 million ($30 million) profit, a solid turnaround from its AED1.8 billion ($496 million) loss in the previous year.

Chairman and Chief Executive Officer Sheikh Ahmed bin Saeed Al Maktoum said the Group’s 2021-22 financial results show a significant turnaround after the toughest year in its history.

“We restored our operations quickly and safely wherever pandemic-related restrictions eased across our markets,” Sheikh Ahmed tweeted.

“Business recovery picked up pace particularly in the second half of the year, and robust customer demand drove a huge improvement in our financial performance and built up our strong cash balance.”

He affirmed that the Group has augmented its future capabilities as it rebuilds, so that it can deliver even better experiences to its customers.

Sheikh Ahmed expected to return to profitability in 2022-23, adding that the Group is working hard to hit its targets, while keeping a close watch on headwinds.

The Middle East's largest carrier said it received a capital injection of AED5.3 billion ($954 million) from Dubai’s government to help it survive the crisis.

In Friday’s statement, it said that as operations ramped up, employees previously on furlough or made redundant were recalled and rehired, and new recruitment drives were held.

The group's total workforce increased by 13% to 85,219 employees, it added.

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