Emirates Group announces half-year performance for 2020-21

The Emirates Group has announced its half-year results for its 2020-21 financial years.

Group revenue was AED 13.7 billion (US$ 3.7 billion) for the first six months of 2020-21, down 74% from AED 53.3 billion (US$ 14.5 billion) during the same period last year. This dramatic revenue decline was due to the COVID-19 pandemic which brought global air passenger travel to a halt for many weeks as countries closed their borders and imposed travel restrictions. As part of pandemic containment measures, Emirates and dnata’s hub in Dubai also suspended scheduled passenger flights for 8 weeks during April and May.

The Group is reporting a 2020-21 half-year net loss of AED 14.1 billion (US$ 3.8 billion).

• Group: Revenue down 74% to AED 13.7 billion (US$ 3.7 billion), and loss of AED 14.1 billion (US$ 3.8 billion) after last year’s profit of AED 1.2 billion (US$ 320 million). Results significantly impacted by unprecedented flight and travel restrictions worldwide due to the COVID-19 pandemic.
• Emirates: Revenue down 75% to AED 11.7 billion (US$ 3.2 billion), and loss of AED 12.6 billion (US$ 3.4 billion) after a half-year profit of AED 862 million (US$ 235 million) for the same period last year. Revenue mainly supported by strong cargo business.
• dnata: Revenue down 67% to AED 2.4 billion (US$ 644 million), loss of AED 1.5 billion (US$ 396 million) after last year’s profit of AED 311 million (US$ 85 million), reflecting the impact of COVID-19 across all dnata business units globally. The loss includes impairment charges of AED 689 million (US$ 188 million).

The Group’s cash position on 30 September 2020 stood at AED 20.7 billion (US$ 5.6 billion), compared to AED 25.6 billion (US$ 7.0 billion) as of 31 March 2020.

His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group said: “We began our current financial year amid a global lockdown when air passenger traffic was at a literal standstill. In this unprecedented situation for the aviation and travel industry, the Emirates Group recorded a half-year loss for the first time in over 30 years.

“As passenger traffic disappeared, Emirates and dnata have been able to rapidly pivot to serve cargo demand and other pockets of opportunity. This has helped us recover our revenues from zero to 26% of our position at the same time last year.

“The Emirates Group’s resilience in the face of current headwinds is testimony to the strength of our business model, and our years of continued investment in skills, technology, and infrastructure which is now paying off in terms of cost and operational efficiency. Emirates and dnata have also built strong brands and agile digital capabilities that continue to serve us well, and enabled us to respond adeptly to the accelerated shift of customer and business activities online over the past 6 months.”

Sheikh Ahmed added: “We would like to thank our customers for their continued support, and express our appreciation for the combined stakeholder efforts that have made it possible for Dubai to resume aviation and other economic activity so quickly and safely. No one can predict the future, but we expect a steep recovery in travel demand once a COVID-19 vaccine is available, and we are readying ourselves to serve that rebound. In the meantime, Emirates and dnata remain responsive in deploying resources to serve our customers and meet demand.

“We have been able to tap on our own strong cash reserves, and through our shareholder and the broader financial community, we continue to ensure we have access to sufficient funding to sustain the business and see us through this challenging period. In the first half of 2020-21, our shareholder injected US$ 2 billion into Emirates by way of an equity investment and they will support us on our recovery path.”

The Emirates Group’s employee base, compared to 31 March 2020, is substantially reduced by 24% to an overall count of 81,334 as of 30 September 2020. This is in line with the company’s expected capacity and business activities in the foreseeable future and general industry outlook. Emirates and dnata continue to look at every mean to protect its skilled workforce, including participating in job saver programmes where these exist.