The Emirates Group has seen a dip in annual losses caused by the Covid-19 pandemic and has predicted a return to profit on the back of strong customer demand and eased travel restrictions.
The Emirates Group reported an annual loss of $1 billion (AED 3.8 billion) in its 2021-22 Annual Report for the financial year ending 31 March 2022, marking a significant improvement on losses of $6 billion (AED 22.1 billion) in the previous financial year.
The group’s revenues soared 86 percent to $18.1 billion (AED 66.2 billion) in 2021-22, while the cash balance stood at $7 billion (AED 25.8 billion), up 30 percent from the previous year mainly due to strong demand across its core business divisions and markets.
The chairman and chief executive of Emirates airlines and the group, Sheikh Ahmed bin Saeed Al Maktoum, said: “This year, we focused on restoring our operations quickly and safely wherever pandemic-related restrictions eased across our markets. Business recovery picked up 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.”
Sheikh Ahmed added: “The health and safety of our people and customers remained a key priority as the world navigated its second full year of the pandemic. Across Emirates and dnata, we responded to dynamic market conditions with agility, and introduced innovative products and services to meet our customers’ needs and provide them with the best possible experience.”
Key details from Emirates’ financial earnings for FY 2021-22
In 2021-22, Emirates received a further capital injection of $ 954 million (AED 3.5 billion) from its ultimate shareholder, the Government of Dubai.
The Group tapped on various industry support programmes and availed a total relief of nearly AED 0.8 billion in 2021-22.
As Emirates and dnata ramped up operations, employees previously on furlough or made redundant were recalled and rehired, and new recruitment drives were held to replenish the Group’s talent pool and boost its future capabilities.
As a result, the group’s total workforce increased by 13 percent to 85,219 employees, representing over 160 different nationalities.
Sheikh Ahmed said: “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 aim 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.
“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.
In 2021-22, the group collectively invested $2.2 billion (AED 7.9 billion) in new aircraft and facilities, and the latest technologies to position the business for recovery and future growth.
It also continued to progress its environmental strategy focussed on reducing carbon emissions, consuming resources responsibly, and conserving wildlife and habitats.
During the year, the Group supported community, humanitarian and philanthropic initiatives in its various markets, as well as innovation incubators, and other programmes that nurture future solutions for industry growth.
Sheikh Ahmed concluded: “Our steady investments in infrastructure, technology, people, and partnerships, will continue to give us the ability and advantage in delivering industry-leading products and value to our customers.
“As Dubai and the UAE move ahead with its strategy for the next 50 years and beyond, the Emirates Group is well positioned to play our role in contributing to economic growth, facilitating global engagement, and making a positive impact on people and communities.”
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