DUBAI - The Emirates Group posted a US$456 million profit in the fiscal year that ended on March 31, 2020, down 28% year on year (yoy). This was the UAE-based airline group's 32nd consecutive year of profit.
In the fiscal year Emirates also recorded a 5% revenue drop to US$28.3 billion with a 15% cash balance increase to US$7 billion. Due to the ongoing coronavirus (COVID-19) crisis, the company has decided to not pay a dividend in order to protect its liquidity.
“From mid-February things changed rapidly as the COVID-19 pandemic swept across the world, causing a sudden and tremendous drop in demand for international air travel as countries closed their borders and imposed stringent travel restrictions,” Emirates Chairman and CEO Sheikh Ahmed bin Saeed Al Maktoum said in an official statement, Sunday (10/5).
“While tackling the immediate challenges and taking advantage of opportunities that come our way, our decisions have always been guided by our long-term goal to build a profitable, sustainable, and responsible business based in Dubai.”
During the fiscal year, Emirates received six new Airbus A380 aircraft and launched three new routes namely Porto, Mexico City, and Bangkok-Phnom Penh. Although its revenue performance remained strong in the second and third quarters, the company’s total revenue in the fiscal year was heavily impacted by the COVID-19 crisis, which resulted in runway closure at Dubai International Airport.
Emirates’ passenger operations have been suspended since March 25 due to the pandemic, which Mr Al Maktoum said has prompted the airline to implement aggressive cost management measures. He added that it will likely take at least 18 months before travel demands return to normal.
“In the meantime, we are actively engaging with regulators and relevant stakeholders, as they work to define standards to ensure the health and safety of travellers and operators in a post-pandemic world,” Mr Al Maktoum concluded. (MS)