Emirates Group posted a profit of AED1.7 billion (USD456 million) for the financial year that ended on March 31, down 28 percent from last year.
The Group’s revenue reached AED104.0 billion (USD28.3 billion), a decline of five percent over last year’s results. Its cash balance was AED25.6 billion (USD7 billion), up 15 percent from last year mainly due to a strong business performance up to February 2020 and lower fuel cost compared to the previous year.
Due to the unprecedented business environment from the ongoing coronavirus pandemic, and to protect its liquidity position, the Group has not declared a dividend for this financial year after last year’s dividend of AED500 million (USD136 million) to the Investment Corporation of Dubai.
“For the first 11 months of 2019-20, Emirates and dnata were performing strongly, and we were on track to deliver against our business targets. However, 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,” said Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.
He added: "Even without a pandemic, our industry has always been vulnerable to a multitude of external factors. In 2019-20, the further strengthening of the US dollar against major currencies eroded our profits to the tune of AED1.0 billion (USD272.4 million), global airfreight demand remained soft for most of the year, and competition intensified in our key markets.”
“The COVID-19 pandemic will have a huge impact on our 2020-21 performance, with Emirates’ passenger operations temporarily suspended since 25 March, and dnata’s businesses similarly affected by the drying up of flight traffic and travel demand all around the world. We continue to take aggressive cost management measures, and other necessary steps to safeguard our business, while planning for business resumption,” said Sheikh Ahmed.
The airline expects it will take 18 months at least, before travel demand returns to a semblance of normality.
“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 travelers and operators in a post-pandemic world. Emirates and dnata stand to reactivate our operations to serve our customers, as soon as circumstances allow,” he continued.
