Emirates Records $1bn Loss in 2021-22, Improves Performance

Photo Credit: Adrian Olstad/AviationSource

LONDON – The Emirates Group, based out of the United Arab Emirates, has reported its 2021-2022 full-year financial results.

The Results…

To start off with, the group, which consists of Emirates Airlines and Dnata, had unfortunately recorded a loss of AED 3.8 billion (US$1.0 billion), however, despite the number is negative, it is still a major improvement on the recovery front compared to the yearly results from 2020-2021.

The results from the previous year were a loss of AED 22.1 billion (US$6.0 billion).

Not only this but the group reported its revenue at AED 66.2 billion (US$18.1 billion) which is a 86% increase compared to 2020-2021, as well as this year’s cash balance standing at AED 25.8 billion (US$7.0 billion) which is a 30% increased compared to last year.

The major recovery for the group was helped by the easing of many COVID-19-related restrictions around the globe and travel returning to a more normal rate.

On top of this, the group also had an AED 3.5 billion (US$954 million) capital injection this year from their ultimate shareholder, the Government of Dubai as well as a total relief of AED 0.8 billion.

Throughout the year, despite the group’s loss, they had still been heavily investing in new aircraft, facilities, and new technologies to future-proof the business and position it in a good position for further recovery to profitable times.

They have also been seen investing in ways of helping to reduce their carbon emissions, consuming resources responsibly, and conserving wildlife and habitats.

All these investments meant that the group has spent AED 7.9 billion (US$2.2 billion) in these areas.

As part of their new fleet investments, the carrier had received the final five Airbus A380s that they had on order, meaning that the production of Airbus’ superjumbo has now come to an end.

Commenting on the results, Chairman and Chief Executive of Emirates Airline and Group, His Highness Sheikh Ahmed bin Saeed Al Maktoum has said:

“This year we focussed on restoring our operations quickly and safely wherever pandemic-related restrictions eased across our markets. Business recovery picked up the pace, particularly in the second half of the year.”

“Robust customer demand drove a huge improvement in our financial performance compared to our unprecedented losses of last year and we built up our strong cash balance.”

As both Emirates and Dnata began to recover their operations this year, they recalled and rehired employees that were previously either furloughed or made redundant.

Not only that but they have also begun new recruitment to replenish their talent pool and boost their future capabilities. This resulted in an increase of 13% to its workforce, which now stands at a total of 85,219 across the group.

Sheikh Ahmed continued:

“For the Emirates Group, 2021-22 was largely about recovery, after the toughest year in our Group’s history. It’s not just about restoring our capacity, but also augmenting our future capabilities as we rebuild.”

“Our is to build back better and stronger so that we can deliver even better experiences to our customers and offer more support to the communities we serve.”

Their 2022-2023 Outlook…

Commenting on the group’s outlook for this new year’s financial results, Sheikh Ahmed said, “We expect the Group to return to profitability in 2022-23, and we are working hard to hit our targets while keeping a close watch on headwinds such as high fuel prices, inflation, new COVID-19 variants, and political and economic uncertainty.”

It is evident that The Emirates Group is striving for a much better year for 2022-2023, and with both the leisure and business travel sectors on the rise, things look to be much more promising for them ahead.

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