Emirates, the largest airline and flag carrier of the United Arab Emirates, cited its cargo business as the 'bright spot' of its operations after the Group reported its first loss in over 30 years due to the overarching impact of the coronavirus pandemic.
In its 2020-2021 disclosure, Emirates recorded an annual loss of AED22.1 billion (US$6 billion) reversing an AED1.1 billion (US$288 million) profit it made the year prior entirely due to the impact of Covid-19 which led to the grounding of most passenger flights and imposed border closures worldwide.
"Emirates SkyCargo put in a stellar performance by rapidly responding to new demand in a changed global marketplace, contributing to 60% of the airline’s total transport revenue," the group said in a statement.
It noted, however, that cargo tonnage carried decreased by 22% to 1.9 million tonnes, due to reduced belly hold capacity although cargo revenue soared by 53% to AED17.1 billion (US$4.7 billion), as yields surged 88% in the face of constrained global capacity.
dnata, the Group’s handling arm saw cargo decline by 18% to 575,000 tonnes, reflecting the reduced available flight capacity in the market.
Revenue from dnata’s UAE airport operations, including ground and cargo handling, also dropped to AED1.7bn (US$455 million).
"The impact of Covid-19 was felt across all dnata businesses, and in 2020-21 dnata recorded a loss of AED1.8 billion (US$496 million) for the first time," it said.
The Group noted that with reduced flight and travel activity across the world, dnata's total revenue also decreased by 62% to AED 5.5 billion (US$ 1.5 billion).
Meanwhile, the group’s freight arm — Emirates SkyCargo — quickly scaled up operations and rebuilt its cargo network to meet strong demand from shippers who faced a capacity crunch when the pandemic forced airlines to drastically reduce flights.
"It supplemented its existing freighter capacity by bringing into service 19 'mini freighters' - modified Boeing 777-300ER passenger aircraft with seats in the economy cabin removed to make room for more cargo and introduced new loading protocols to safely use overhead bins and seats."
Meanwhile, Emirates’ SkyCargo’s total freighter fleet stood unchanged at 11 Boeing 777Fs.
Emirates received three new A380 aircraft during the financial year and phased out nine Boeing 777-300ERs and five older A380s, leaving its total fleet count at 259 at end-March.
Emirates to bounce back "stronger"
In October, Emirates set up a dedicated GDP-certified airside hub in Dubai for Covid-19 vaccines and later partnered with UNICEF to quickly move vaccines to developing nations through Dubai.
"No one knows when the pandemic will be over, but we know recovery will be patchy. Until 2020-2021, Emirates and dnata have had a track record of growth and profitability, based on solid business models, steady investments in capability and infrastructure, a strong drive for innovation, and a deep talent pool led by a stable leadership team. These fundamental ingredients of our success remain unchanged," Emirates Group Chairman and Chief Executive, Sheikh Ahmed bin Saeed Al Maktoum said.
"Together with Dubai’s undiminished ambitions to grow economic activity and build a city for the future, I am confident that Emirates and dnata will recover and be stronger than before," he added.
