Emirates Group announces 22.1Bn AED loss; 66% drop in revenue

Baraka Chat
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Emirates Group records an annual loss of AED 22.1 billion (US$ 6.0 billion) due to COVID-19 pandemic impact, its first non-profitable year in over three decades.

  • Group revenue of AED 35.6 billion (US$ 9.7 billion) impacted by worldwide travel restrictions and border closures during the entire financial year
  • Results impacted by one-time impairment charges of AED 1.5 billion on Group’s non-financial assets
  • Ends year with cash balance of AED 19.8 billion (US$ 5.4 billion)

dnata reports a loss of AED 1.8 billion (US$ 496 million) down from AED 618 million (US$ 168 million) profit in the previous year

  • Revenue declined by 62% to AED 5.5 billion (US$ 1.5 billion), reflecting the pandemic impact across all business divisions in the UAE and worldwide

What are your thoughts on the future of Air travel? Will business travel revert to normalcy or are we all doomed to zoom for the rest of our lives?

How does this reflect on other public carriers - American Airlines or Airline manufacturers?

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RIPerino.

Congrats to everyone who made bank off of buying calls during the airline bounce back but for everyone else in the industry it’s pretty much a bloodbath.

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Yeah, can’t say. I’ve been thinking about how this could potentially impact the likes of Boeing. Let’s just assume oil doesn’t stay above 80 for the next 6-9 months - Abu Dhabi’s gonna be running a deficit again, financed by private money (National Bonds) - add to this the fact the Emirates has less cash on hand than its annual loss.

It’s either a billion dollar capital injection into Emirates or a move towards asset reduction.

This could add massively to the supply of aircrafts in the markets, killing Boeing’s order pipeline.