© Reuters. Emirates Airline Boeing 777 aircraft at Dubai International Airport in Dubai
By Alexander Cornwell
DUBAI (Reuters) – State-owned Emirates on Thursday said Dubai would help it tackle the coronavirus crisis after $ 3.4 billion in losses drove the airline's holding company in the first half of the year for more than thirty years had.
Emirates said global travel restrictions fell 75% to $ 3.2 billion as passenger traffic fell 95% to $ 1.5 million in the six months to the end of September.
"We have been able to leverage our own strong cash reserves and continue to ensure, through our shareholder and the wider financial community, that we have access to sufficient funding to keep the business going and guide us through this challenging time," said Chairman Sheikh Ahmed bin Saeed al- Maktoum said.
The Dubai government would support the airline on its recovery path, said Sheikh Ahmed, who is also a senior member of the Dubai ruling family and holds senior positions in the government.
Emirates temporarily suspended most flights at the height of the pandemic that has decimated global travel.
The airline only occupied 38.6 %% of the seats offered, but saw high demand for cargo due to the limited availability of air cargo services worldwide due to the decline in passenger flights.
Emirates, which posted half-year profits of $ 235 million a year ago, received $ 2 billion in government assistance from the Dubai government between April and September this year, which the airline said was an equity stake.
The entire operation of the airline depends on international demand as there are no domestic flights.
The Emirates Group, which also owns the airline and other aviation and travel facilities, saw revenue decline 74% to $ 3.7 billion and a loss of $ 3.8 billion.
The last time the Emirates airline reported a loss was for the 1987-88 fiscal year, and this was largely due to the cost of its commissioning, a spokeswoman said.
The number of employees in the group fell by 24% to 81,334 between April and September without specifying the number of employees of the airline.
Sources told Reuters that thousands of the airline's employees, including pilots and flight attendants, have lost their jobs at Emirates this year.
Disclaimer: Fusion Media would like to remind you that the information contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. Therefore, prices may not be accurate and may differ from the actual market price. This means that the prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading losses you may suffer from using this data.
Fusion Media or anyone involved with Fusion Media assumes no liability for any loss or damage caused by reliance on the information contained on this website, such as data, offers, charts and buy / sell signals. Please be fully informed about the risks and costs associated with trading in the financial markets. This is one of the riskiest forms of investment possible.