Emirates predicts 18-month lull in air demand

Published
18
The Dubai carrier, the largest in the Middle East, posted 1.1 billion dirhams ($288 million) in net profit for the financial year ending March, up from $237 million the previous year. — AP
The Dubai carrier, the largest in the Middle East, posted 1.1 billion dirhams ($288 million) in net profit for the financial year ending March, up from $237 million the previous year. — AP

Gulf aviation giant Emirates said on Sunday it would take at least 18 months for travel demand to return to “a semblance of normality”, despite reporting bumper pre-pandemic profits.

The Dubai carrier, the largest in the Middle East, posted 1.1 billion dirhams ($288 million) in net profit for the financial year ending March, up from $237 million the previous year.

It was the 32nd straight year of profit for Emirates, which operates a fleet of 115 Airbus A-380 superjumbos and 155 Boeing-777 airliners.

It had suspended flights on March 22 before resuming some services two weeks later.

Emirates Group chief Sheikh Ahmed bin Saeed Al-Maktoum said the airline had performed strongly in the first 11 months of the fiscal year.

“However, from mid-February things changed rapidly as the Covid-19 pandemic swept across the world,” he said in a statement.

This caused “a sudden and tremendous drop in demand for international air travel as countries closed their borders and imposed stringent travel restrictions".

“We expect it will take 18 months at least, before travel demand returns to a semblance of normality,” he added.

Emirates' profits were boosted by a fall in oil prices, causing a 15 per cent decline in fuel costs to $7.2 billion — around 31pc of its operating costs.

However, the carrier saw its annual revenues decline by 6pc to $25 billion due to the coronavirus pandemic and the closure of a runway at Dubai airport.

The airline said it had transported just over 56 million passengers in the fiscal year, a drop of 4pc year-on-year, while cargo had declined by a tenth to 2.4 million tonnes.

The strong US dollar eroded $272 million of profits, while intensive competition also affected the bottom line.

Even before the coronavirus pandemic paralysed the aviation industry, Emirates had slimmed its orders from both Airbus and Boeing, cutting tens of billions of dollars worth of aircraft.

The government of Dubai, whose economy heavily depends on aviation and tourism, said last month it would inject capital into Emirates to help it cope with the impact of coronavirus.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Kashmir unresolved
Updated 30 Sep, 2026

Kashmir unresolved

The just solution lies in India addressing the issue through a trilateral dialogue involving the legitimate representatives of the Kashmiri people and Pakistan.
Water shortage
30 Sep, 2026

Water shortage

THAT the country is entering the Rabi season with an anticipated water shortage of nearly 25pc, the lowest carryover...
Young hearts
30 Sep, 2026

Young hearts

THE observance may have passed, but the message of World Heart Day should not fade with it. The occasion is a useful...
Terror and politics
Updated 29 Sep, 2026

Terror and politics

There is an urgent need to tone down the rhetoric and tackle terrorism as a collective challenge for both the affected provinces and the federation.
Watching the glaciers
29 Sep, 2026

Watching the glaciers

THE latest signs from Pakistan’s mountains are worrying. Suparco says the number of unfrozen glacial lakes it...
Dangerous agenda
29 Sep, 2026

Dangerous agenda

AS the world remains fixated on the US-Iran conflict, elsewhere in the Middle East, Israel is consolidating its grip...