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Emirates narrows annual loss to USD 1.1 billion as travel curbs ease

Author : Pankaj Singh | Published Date : 2022-05-16 

Emirates narrows annual loss to USD 1.1 billion as travel curbs ease

Dubai’s Emirates Airlines has reportedly cut its losses to USD 1.1 billion from USD 5.5 billion for the FY 2021-22, as travel restrictions eased and aviation capacity extended. The airline’s revenue jumped 91% to USD 16.1 billion even as the rising jet fuel costs threatens to overshadow the comeback in travel demand. 

Sheikh Ahmed bin Saeed Al Maktoum, the CEO of Emirates Group, cited that the company was more focused on recovery after facing the toughest year during the pandemic. However, they are expecting to return to profitability in FY 2022-23 and are working hard to achieve their targets while keeping an eye on headwinds like soaring fuel costs, new variants of COVID-19, inflation, as well as economic and political uncertainties.

Notably, the world’s largest long-haul carrier had resumed its flights to 140 destinations but rising fuel prices, which surged 50%, are challenging the already COVID-19 battered airline sector. Emirates claimed that its fuel bill almost doubled to USD 3.8 billion given the costs of jet fuel and oil surge recently.

When asked about the prices of fuel, Sheikh Ahmed claimed that it’s quite difficult to predict how far the prices might go down or where they will stop. He added that geopolitical tensions and the Russia-Ukraine crisis are affecting the airline business by significantly impacting the fuel prices.

Emirates stated that fuel accounted for 23% of operating costs in 2021-22 as compared to 14% in 2020-21.

Meanwhile, the reopening of important markets in Asia is the key to the recovery of Emirates Airlines, experts claimed. The challenges, however, would remain given 777 fleet concerns, continued lockdown in China, and cost-of-living-crisis globally which is expected to be more noticeable to airlines in the coming winter.

Source Credit:

https://www.cnbc.com/2022/05/14/emirates-airline-stung-by-soaring-fuel-prices-posts-1point1-billion-dollar-loss.html

 

About Author

Pankaj Singh . .

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

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