Emirates Group’s cargo volumes down by 35%

Emirates Group's cargo volumes down by 35%

Caption: Emirates Group’s cargo volumes down by 35%

The Emirates Group has announced its cargo volumes down by 35% in half-years results for 2020-21 financial year.

The group revenue was AED 13.7 billion ($3.7 billion) for the first six months of 2020-21, down 74 per cent from AED 53.3 billion ($14.5 billion) during the same period last year.

This dramatic revenue decline was due to the Covid-19 pandemic which brought global air passenger travel to a halt for many weeks as countries closed their borders and imposed travel restrictions. As part of pandemic containment measures, Emirates and dnata’s hub in Dubai also suspended scheduled passenger flights for 8 weeks during April and May.

The Group is reporting a 2020-21 half-year net loss of AED 14.1 billion ($3.8 billion). Its cash position on September 30, 2020 stood at AED 20.7 billion ($5.6 billion), compared to AED 25.6 billion ($7 billion) as at March 31, 2020.

Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group said, “We began our current financial year amid a global lockdown when air passenger traffic was at a literal standstill. In this unprecedented situation for the aviation and travel industry, the Emirates Group recorded a half-year loss for the first time in over 30 years. As passenger traffic disappeared, Emirates and dnata have been able to rapidly pivot to serve cargo demand and other pockets of opportunity. This has helped us recover our revenues from zero to 26% of our position same time last year. The Emirates Group’s resilience in the face of current headwinds is testimony to the strength of our business model, and our years of continued investment in skills, technology and infrastructure which are now paying off in terms of cost and operational efficiency. Emirates and dnata have also built strong brands and agile digital capabilities which continue to serve us well, and enabled us to respond adeptly to the accelerated shift of customer and business activities online over the past six months.”

The Emirates Group’s employee base, compared to March 31, 2020, is substantially reduced by 24 per cent to an overall count of 81,334 as at September 30, 2020. This is in line with the company’s expected capacity and business activities in the foreseeable future and general industry outlook. Emirates and dnata continue to look at every means to protect its skilled workforce, including participating in job saver programmes where these exist.