Emirates Group Chairman and Chief Executive, Sheikh Ahmed bin Saeed Al Maktoum,
The world’s leading long haul carrier, Emirates Airlines has suffered a loss of $1.1billion during its trading year from April 2021 to March 2022.
Despite the largest long haul carrier’s leapt in revenue by 91% to $16.1 billion, the albatross to its profitability was the operating cost occasioned by the astronomical increase in the price of aviation fuel, JETA1
Emirates said in the 2020/2021 trading year, fuel accounted for 14 % of its operating cost while in the 2021/2022 trading year, aviation fuel accounted for 23% of its operating costs.
Emirates Group Chairman and Chief Executive, Sheikh Ahmed bin Saeed Al Maktoum, said its fuel bill was more than doubled to $3.8 billion dollars as the price of oil and jet fuel soared in recent quarters.
He said the upward trajectory in the pump price of aviation fuel had a tremendous effect on the airline’s business.
Saeed Al Maktoum noted that geopolitics had an adverse impact on aviation fuel and added, “Russia’s invasion of Ukraine is having a significant impact on fuel prices”.
Sheikh Ahmed bin Saeed Al Maktoum, expressed optimism thus, “we expect the Group to return to profitability in 2022-23, and 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.
However, Emirates and its air service business subsidiary, Dnata, recorded a combined revenue increase of 86% to $18.1 billion, and the group ended the year with a 30% improvement in its cash balance to $7 billion dollars.
The Emirates Group Chairman and Chief Executive, in a media statement, said, “2021-22 was largely about recovery, after the toughest year in our Group’s history.”
Emirates Group Chairman further revealed that the group was planning to repay the Dubai government part of the about $4 billion bailouts extended to it as emergency relief during the ravaging effect of the pandemic that brought aviation to its knees.
He described the bailout fund as money well spent and added that with the improvement recorded in air travel the airline was ready to start servicing the facility that the government injected when the airline needed it most.Share