"Emirates Group" concludes its fiscal year with revenues of 35.6 billion dirhams.. and cash balances of 19.8 billion

Mohammed bin Rashid: We are fully confident that the Emirates Group will continue to shape the future of global aviation

  • Ahmed bin Saeed: “I am fully confident in the recovery of (Emirates Airlines) and (Dnata), and their emergence is stronger than before.”

  • 22.1 billion dirhams losses in the first year of non-profitability for the "group".

    From the source

  • Emirates Airlines is committed to its strategy of operating a modern and highly efficient fleet.

    From the source

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His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, affirmed that "the aviation sector is a vital component of Dubai's vision to consolidate its position as a major global economic center."

His Highness said, in a speech inaugurating the annual report of the Emirates Group 2020/2021, that “(The Emirates Group) contributes to enhancing Dubai’s economic success process, and it represents an active element in confirming opportunities for growth and prosperity. for our national economy during the next stage.”

His Highness expressed his full confidence that the "Group" will continue its leading role in shaping the future of global aviation, coinciding with its role in implementing the vision of the UAE and achieving its economic aspirations.

financial results

In detail, the “Emirates Group” announced the first annual loss in more than 30 years, due to the decline in revenues caused by the impact of restrictions on flights and travel, as a result of the “Covid-19” pandemic throughout the fiscal year 2020/ 2021.

The report for the fiscal year 2020/2021, which was launched by the “Group”, yesterday, showed that it recorded losses of 22.1 billion dirhams ($ 6.0 billion) for the fiscal year ending on March 31, 2021, compared to profits of 1.7 billion dirhams ( $456 million) last year.

The group’s revenues amounted to 35.6 billion dirhams (9.7 billion dollars), a decrease of 66% from the results of last year, while cash balances amounted to 19.8 billion dirhams (5.4 billion dollars), a decrease of 23% from the previous year, mainly due to weak demand caused by various restrictions. Travel and related business across all major business divisions and markets of the Group due to the pandemic.

success story

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, said, "The (Covid-19) pandemic represented one of the greatest challenges faced by humanity throughout history, and caused a state of unprecedented confusion throughout the world and at all levels. However, it was a reason for reaching an unimaginable degree of flexibility in dealing with its consequences.”

His Highness stressed, in a speech in the annual report of the Emirates Group 2020/2021, that "the UAE presented a real success story in the face of the pandemic, with strength, steadfastness and endurance, as it was well-deserved to It passed the test by showing a high ability to deal with such unexpected exceptional situations, and even surpassed the worst in it, and it is stronger than before.”

His Highness continued: "The UAE has proven that it is one of the best countries in the world prepared and ready to deal with this pandemic, as it has not only effectively protected the health and well-being of the country's citizens and residents, but also exceeded the economic effects of the crisis, thanks to our investments during the past few decades in establishing an infrastructure. A world-leading infrastructure, in addition to the country’s well-established institutions and high-level services, all of which are important elements that helped us in facing the challenges of (Covid-19).

His Highness explained: "One of the luminous images that emerged during the pandemic is the concerted efforts of the UAE society and its institutions, to mobilize the capabilities and resources necessary to combat the pandemic.

The integration of the efforts of the public and private sectors in the field of health care is one of the most prominent examples of the spirit of solidarity that prevails in the Emirati society.”

Corporate Support

His Highness said: “In confirmation of this spirit, the Dubai government has given top priority to expanding support for companies, so that the short-term impact of the pandemic does not turn into greater challenges in the future, while continuing our commitment to helping all sectors, in order to accelerate recovery on sound foundations.

During the pandemic, the model that we followed in finding solutions to the challenges it brought was characterized by cooperation and upholding noble human values ​​and speed of work and achievement.

His Highness continued: "The response of the aviation and logistics sector in Dubai to address the consequences of (Covid-19) is a clear example of our country's ability to efficiently address such circumstances, as those in charge of the aviation sector, in the spirit of one team, rushed to employ their global capabilities, not from In order to facilitate not only the distribution of vaccines in the UAE at a high speed, but also the delivery of relief supplies and humanitarian aid to developing countries.”

full confidence

His Highness stressed that "the aviation sector is a vital component of Dubai's vision, to consolidate its position as a major global economic center, while the Emirates Group contributes to enhancing Dubai's economic success process, and it represents an active element in confirming the opportunities for growth and prosperity of our national economy during the next stage."

His Highness expressed his full confidence that the "Group" will continue its leading role in shaping the future of global aviation, coinciding with its role in implementing the vision of the UAE and achieving its economic aspirations.

new stage

His Highness Sheikh Mohammed bin Rashid Al Maktoum said, "With preparations to celebrate the golden jubilee of its founding, the UAE is preparing to enter a new stage in its successful path, which began at its beginning as a modest regional commercial center, to turn, in less than 50 years, into a country that sent its pioneers. into space, and launched the first probe of its kind in the Arab and Islamic worlds on a historic mission to discover Mars.”

His Highness said: "In the UAE, we are used to having no ceiling for our ambitions, and I am fully confident in our ability to achieve more unprecedented achievements with which we affirm our leadership, and we continue our path that was launched by the founding fathers, inspired by their vision that the UAE will always be She has a clear and influential positive contribution to making the world a better place for future generations.”

COVID-19 pandemic

In turn, His Highness Sheikh Ahmed bin Saeed Al Maktoum, Supreme President and CEO of Emirates Airlines and the group, said, "The (Covid-19) pandemic

It continues to take a heavy toll on human lives, societies, economies, and the aviation and travel industry.”

His Highness added: "(Emirates Airlines) and (Dnata) were severely affected in the

2020/2021 due to reduced demand for international travel, as countries around the world closed their borders and imposed strict travel restrictions.

His Highness continued, "Our main priorities throughout the year were to ensure the health, well-being and safety of our employees and customers, maintain our cash reserves, control costs, and restore our operations safely and sustainably."

His Highness explained: "(Emirates Airlines) received an amount of 11.3 billion dirhams ($ 3.1 billion) from the Dubai government, and (dnata) also benefited from many industry support programs and exemptions of about 800 million dirhams in 2020/ 2021, which helped in continuing our operations, and retaining the vast majority of workers, but this unfortunately did not prevent the difficult decision to be made to adjust the size of the workforce, in proportion to the low operating requirements.”

confidence and optimism

His Highness Sheikh Ahmed bin Saeed Al Maktoum said: “No one knows when the world will overcome the pandemic, but we know that the recovery will be erratic.

The economies and companies that maintained their strength during the pandemic will be in a better position to recover.”

His Highness emphasized that Emirates Airlines and dnata enjoyed a track record of growth and profitability until 2020/2021, based on strong business models, continuous investments in capabilities and infrastructure, a strong drive for innovation, and human resources. Highly efficient under the supervision of a stable leadership team, noting that "these essential components of the group's success remain unchanged."

His Highness added: "I am fully confident in the recovery of (Emirates Airlines) and (Dnata), and their emergence stronger than before, in conjunction with Dubai's permanent ambitions to develop economic activity and build the city of the future."

His Highness Sheikh Ahmed bin Saeed Al Maktoum concluded his remarks by saying: “This year we will continue to adopt a flexible approach in response to changing market dynamics.

We aim to restore our full operational capacity as soon as possible to serve customers, and continue to contribute to rebuilding economies and societies affected by the pandemic.”

Emirates Airlines performance

The operational results showed that the total capacity of “Emirates Airlines” in terms of passengers and freight decreased at the end of the fiscal year 2019/2020 by 58%, to reach 24.8 billion kilotons of available kilometres, due to restrictions on travel and flights due to the pandemic. , including the complete suspension of passenger services, in compliance with the directives of the UAE government, as of March 25, 2020.

During the financial year 2020/2021, Emirates Airlines received three new A380 aircraft, and 14 aircraft were out of service, including nine Boeing 777-300ER aircraft, and five A380 aircraft. “At the end of March 2021, the fleet numbered 259 aircraft.

The average age of the fleet's aircraft is 7.3 years.

In turn, Emirates Airlines' order record remained unchanged at 200 aircraft, at a time when it confirmed that it

It remains committed to its long-term strategy to operate a modern and highly efficient fleet.

revenue and costs

As a result of the significant decline in the use of available energy and restrictions in most markets, the total revenues of Emirates Airlines for the fiscal year decreased by 66% to 30.9 billion dirhams ($ 8.4 billion), at a time when currency fluctuations this year did not have a significant impact on revenues.

In turn, operating costs decreased by 46%, compared to the fiscal year 2019/2020, while the cost of ownership (use and depreciation) and the cost of employees were the two largest components of the cost in the fiscal year, followed by fuel, which constituted 14% of operating costs, compared to 31% in 2019-2020.

The fuel bill decreased by 76%, compared to the previous year, to reach 6.4 billion dirhams (1.7 billion dollars), as a result of a 69% decrease in fuel purchases, due to the impact of reduced capacity.

As a result of the ongoing restrictions on flights and travel due to the pandemic, Emirates Airlines announced losses of 20.3 billion dirhams ($ 5.5 billion), compared to profits for the previous year, which amounted to 1.1 billion dirhams ($ 288 million).

The results also showed that Emirates Airlines transported 6.6 million passengers in the fiscal year 2020/2021, a decrease of 88%, with a decrease in seat capacity by 83%.

Emirates Air Cargo

For its part, Emirates SkyCargo, the air cargo arm of Emirates Airlines, achieved an excellent performance by responding quickly to demand in the changing global markets, as it contributed 60% of the total transportation revenues.

The available cargo capacity was enhanced with the introduction of 19 small cargo aircraft (the Boeing 777-300ER passenger aircraft, modified by removing the economy class seats to carry cargo in the passenger cabin).

The cargo division has also introduced new protocols for the safe loading of goods in overhead lockers and on passenger seats.

Thanks to the strong demand for air freight throughout the year, the cargo division of Emirates Airlines achieved revenues of 17.1 billion dirhams ($ 4.7 billion), a growth of 53%, compared to the previous year.

Balances and Financing

The results showed that, in addition to the financing of 14.5 billion dirhams, which was collected by Emirates Airlines during the fiscal year for aircraft and general purposes, the airline received confirmed offers to finance two aircraft in the current fiscal year 2021/2022, and It continues to benefit from the financial market to obtain more liquidity, to provide more support in facing the potential effects of the pandemic on the company's cash flows in the foreseeable future.

Emirates Airlines concluded its fiscal year with cash balances of 15.1 billion dirhams ($ 4.1 billion), which is a strong position in light of the return of 8.5 billion dirhams in the form of refunds to customers.

• «Emirates Group» records losses amounting to 22.1 billion dirhams in the first year of non-profitability, during more than three decades.

Deputy Head of State:

• "The aviation sector is a vital component of Dubai's vision, to consolidate its position as a major global economic center."

• «(Emirates Group) contributes to enhancing Dubai's economic success process».

4.7 billion dirhams dnata cash balances

The “Covid-19” pandemic has had a clear impact on the business of all dnata companies, as it recorded a loss of 1.8 billion dirhams ($496 million) in the fiscal year 2020/21 for the first time.

With the significant decline in aviation and travel activity globally, dnata's total revenues decreased by 62% to 5.5 billion dirhams ($ 1.5 billion), and dnata's operating cost during the fiscal year decreased by 48% to 7.4 billion dirhams ($ 2.0 billion). , as a result of reduced operations in the global airports, catering and travel operations divisions.

dnata's cash balances amounted to 4.7 billion dirhams ($1.3 billion), a decrease of 12%. Payments in financing activities, mainly loans and rent payments, amounted to 548 million dirhams ($149 million).

In turn, the revenues of "dnata" for airport operations (UAE) decreased to 1.7 billion dirhams (455 million dollars).

The operational results revealed a decrease in the number of aircraft that dnata provided handling services in the UAE by 59% to 78,000 aircraft.

Revenues from dnata's International Airport Operations division decreased by 43% to AED 2.3 billion ($617 million), and the number of aircraft handled decreased by 57% to 211,000 aircraft.

Savings of 7.7 billion dirhams

The Emirates Group statement confirmed that for the first time since its inception, the group had to lay off workers.

As a result, the group's total workforce decreased by 31% to 75,145 employees representing more than 160 nationalities.

The group also restructured its financial obligations, negotiated contracts, audited and standardized operations, while maintaining strict cost control, at a time when various cost-cutting initiatives contributed to achieving savings estimated at 7.7 billion dirhams during the year.

During the fiscal year 2020/2021, the Emirates Group invested 4.7 billion dirhams ($1.3 billion) in purchasing new aircraft and equipment, owning companies and facilities, and the latest technologies to return business to the path of recovery and future growth.

It has also continued to invest resources in environmental initiatives, in addition to supporting communities and incubator programs that nurture talent and innovation to drive future industry growth.

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