DUBAI, United Arab Emirates ( Associated Press) – Emirates Air, one of the world’s largest airlines and the Middle East’s top carrier, said on Friday it lost $1.1 billion in the last fiscal year, but that figure is still a year away. Already signifies 80% improvement. The airline said revenue was up 91%, reaching $16.1 billion.
As Emirates Air braces it out of the worst of the pandemic, its main hub of Dubai International Airport remains one of the busiest in international travel.
Emirates expects to exit the red this year and see profits as it plans to start paying back Its shareholder, the Dubai government, dumped some of the $4 billion to keep the airline afloat amid the COVID-19 lockdown.
Career success and financial health are seen as a core of Dubai’s own economy, which relies heavily on tourism, foreign investment and real estate purchases by the world’s elite. Emirates, which is part of the United Arab Emirates, was quick to open its doors to foreign travelers with few requirements for entry after a brief, but extremely stringent lockdown period in 2020.
Emirates President and Chief Executive, Sheikh Ahmed bin Saeed Al Maktoum, said business recovery picked up pace in the second half of the fiscal year, with travel demand returning. It is not clear how much of this was related to the travel of visitors to Dubai to experience its six-month-long world fair, or expo, which ended in March.
The airline posted a staggering $5.5. Billions in losses last fiscal year – the first time the airline hadn’t churned out profits in more than three decades.
Broader Emirates Group, which operates ground services provider DNAta, said DNAta was profitable last fiscal, reversing a $496 million loss in the previous year to $30 million in profit. Overall revenue topped $18 billion, an 86% improvement from a year ago. Its fiscal year is from April 2021 to March 2022.
“We expect the Group to return to profitability in 2022-23, and work hard to achieve its targets, keeping a close eye on headwinds such as higher fuel prices, inflation, new COVID-19 variants and political and economic uncertainty. are working hard. Al Saeed said in Friday’s earnings report.
Fuel costs, which have skyrocketed in recent months, account for about a quarter of the total operating costs in the last financial year. The airline said its fuel bill had more than doubled over the past year to $3.8 billion as it expanded its number of flights and increased fuel prices by 75%.
Emirates Group said that as operations ramped up, previously laid-off employees were recalled and rehired, while new recruitment drives were launched. The airline’s president said earlier this week that staffing levels are up to about 80% compared to before the pandemic. The company says it employs 85,219 employees from around the world, making it one of the largest employers in Dubai.
The airline, which has a reputation for its in-flight cabin luxury and comfort for new aircraft, flies to about 140 cities around the world, including 12 in the US. It launched a new route to Miami in July. It recently announced that it would retrofit 120 of its Boeing 777 and A380 aircraft with new premium economy seats.