On Tuesday, Emirates, the largest airline company in the Middle East, declared a net $5.5 billion financial loss for the past year, with revenue falling by more than %66 as a result of global travel restrictions brought on by the COVID-19 pandemic.
Operating dnata travel and ground services at airports, the Emirates Group announced a total $6 billion loss.
It’s the first time in more than three decades that the parent company of the Dubai-based airline has not made a profit, emphasizing the magnitude of COVID-19’s influence on the aviation industry.
Revenue fell by $8.4 billion, despite a 46 percent reduction in operating costs, according to the Dubai-based airline announcement. The company’s total revenue, including its dnata services, totaled $9.7 billion, down from $28.3 billion the year before. Because of the pandemic’s financial impact, the corporation has also furloughed a third of its workforce.
The pandemic “has been one of the toughest challenges humankind has faced,” according to a brief statement provided by Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum in the company’s annual report.
Also, Dubai’s state-owned carrier, Emirates, was given a $2 billion lifeline by the government to avoid a cash crisis in 2020.
According to the International Air Transport Association, it is estimated that the aviation industry lost about $126 billion in 2020 and these losses will continue in 2021 as well due to the COVID-19 pandemic.