Emirates Airline posts 21% increase in profit but warns about future coronavirus impact. On Sunday, Dubai state carrier Emirates Airlines reports a rise in its full-year profit in the 12 months to March 31. The company said it gained 1.06 billion dirhams ($287.5 million) in that period after making 871 million dirhams the previous year. But the airline, one of the biggest long-haul carriers in the world, also warns that coronavirus pandemic will affect the profits during the coming year.
From February forward, things began to change as the coronavirus spread around the globe, Emirates Airline and Group Chairman Sheikh Ahmed bin Saeed Al Maktoum said.
In March, the outbreak cost Emirates over 3.4 billion dirhams in revenues, the airline reported. Al Maktoum also said that the Covid-19 will heavily impact the coming revenues.
The company has already reduced the basic salaries of most of its staff as the UAE government suspended all passenger flights in late March, according to the report.
Emirates posted 20.2 billion dirhams ($5.5 billion) in cash assets for the 2019-20 year period. Due to the COVID-19 spread, Emirates’ total passenger and cargo capacity tumbled by 8% to 58.6 billion at the end of 2019-20.
“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,” Al Maktoum said.